[Music] All right, final trade time. Mike Co, kick it off. >> Yeah, Zillow announces next week.It's at the midpoint of its 52- week range. I think options are expensive. Sell strangles.Kim Brian, great having you. Bringing the energy every night. Mitsubishi, MUFG, that's easy for me to say.Wow. Japanese banks stay there. I am long.Japanese banks. >> All right, Dan. Uh, Guy is going to try to convince you maybe to buy some of these beaten up software names.Do you think that's going to happen, guy. >> I might ...

Industry News - One of Japan's leading regions for offshore wind power is urging authorities to reissue a tender for two critical projects [1] Project Updates - Mitsubishi withdrew from the planned offshore wind power developments [1]

Core Insights - New vehicle sales in Indonesia fell by 15% in September 2025, totaling 62,071 units compared to 73,108 units in September 2024 [1] - The overall vehicle market shrank by over 11% year-on-year in the first nine months of 2025, with light passenger vehicle sales down by 13% and commercial vehicle sales down by 7% [3] - Japanese automakers are facing increased competition from Chinese brands, particularly in the battery electric vehicle (BEV) segment, which saw sales double to 54,593 units in the first nine months of 2025 [5] Market Performance - The Indonesian vehicle market experienced a decline in sales, with a total of 561,819 units sold in the first nine months of 2025, down from 633,660 units in the same period last year [3] - Sales of small passenger cars under the government's 'affordable energy saving car' program dropped significantly by 34% to 89,051 units [4] - Overall vehicle production decreased by 3.4% year-to-date, totaling 854,952 units, although exports of fully-assembled vehicles rose by 11% to 382,374 units [6] Manufacturer Performance - Toyota's sales fell by 13% to 181,817 units, while Daihatsu's sales dropped by 24% to 95,307 units [4] - Other manufacturers also reported declines: Mitsubishi down 10% to 48,944 units, Honda down 33% to 46,623 units, and Suzuki down 10% to 44,253 units [4] - The presence of Chinese brands, such as BYD and its Denza brand, has significantly impacted the market, with BYD accounting for 26,852 units sold [5]

Core Insights - Berkshire Hathaway's investment in five Japanese trading houses has surpassed $30 billion, with Warren Buffett continuing to increase his holdings [1][2] - The value of these positions has risen from approximately $6.3 billion in August 2020 to $31.0 billion, marking a 392% increase [2] - Buffett has publicly acknowledged that two of the stakes have exceeded 10%, with Mitsui being one of them, where Berkshire owns 292,044,900 shares valued at around $7.1 billion [3][4] Investment Details - Berkshire's stake in Mitsui is now 10.1%, an increase from 9.7% reported in March [4] - Mitsubishi reported a similar increase in Berkshire's holding to 10.2% from 9.7% [5] - There is speculation that the stakes in the other three companies—Itochu, Marubeni, and Sumitomo—may also have surpassed 10% [5] Strategic Outlook - Buffett indicated that the five companies agreed to relax the ceiling on ownership, allowing for potential increases in stakes over time [6] - Buffett's initial attraction to these stocks was due to their perceived undervaluation compared to prevailing interest rates [7] - Berkshire plans to hold these Japanese stocks for the long term, potentially "50 years or forever" [7]

Core Insights - NextSource Materials Inc. is positioning itself as a leading non-Chinese producer of battery anode material, marking a significant milestone with its project in Abu Dhabi [1][2]. Financial Overview - The total capital expenditure for the project is approximately US$291 million, with the first phase costing just over US$150 million. The project is expected to yield an internal rate of return (IRR) of 24% and a net present value (NPV) exceeding US$400 million, with a payback period of about 4.6 years [3]. Strategic Location Advantages - The choice of Abu Dhabi's Industrial City is driven by cost advantages, speed to market, and access to global EV supply chains. The location offers an established industrial ecosystem, reagent suppliers, and low-cost power, facilitating a plug-and-play setup for production by 2026 [4]. Financing Strategy - The company is working on securing the right capital structure for phase one, with Société Générale facilitating debt and equity funding. There is strong interest from local banks and partners, bolstered by the Mitsubishi offtake agreement [5]. Vertical Integration Goals - NextSource is close to achieving its vision of building vertically integrated anode capacity outside Asia, leveraging its Molo mine in Madagascar, which is one of the largest and highest-quality graphite resources [6]. Upcoming Milestones - The company aims to reach the final investment decision (FID) within the next three months, with engineering work underway and half of the necessary equipment already ordered [7].

Core Insights - Warren Buffett is finding value in the current market, with a particular focus on a standout investment opportunity [1][12] - Berkshire Hathaway has been a net seller of stocks for 11 consecutive quarters, but has recently invested over $4 billion in 13 different stocks [3][4] Berkshire Hathaway's Recent Activities - The company disclosed purchases of 10 stocks in its portfolio during the second quarter, spending $3.9 billion on equities [4][5] - Notable purchases include an investment of approximately $106 million in Sirius XM and an increase in stake in Mitsubishi from 9.74% to 10.23% [5][6] Investment Strategy - Buffett's strategy involves buying into companies facing short-term challenges, exemplified by his investment in UnitedHealth, which is currently under pressure due to rising costs and regulatory investigations [7][8] - Other companies in which Buffett has invested include Nucor, Lennar, Constellation Brands, Pool Corp, and Domino's Pizza [9] Constellation Brands Analysis - Constellation Brands has revised its fiscal 2026 outlook downward due to macroeconomic uncertainty affecting premium beer sales, particularly among Hispanic consumers [14] - Despite a dip in beer sales, the company's profit margins remain strong, supported by top brands like Modelo and Corona [15] - The company is developing new products in the nonalcoholic and ready-to-drink categories, indicating a proactive approach to market challenges [16] Market Performance and Valuation - Constellation Brands has seen a 45% growth in beer sales from 2020 to 2024, although slower growth is expected in 2025 and a decline in 2026 has pressured its stock price [17] - The stock is currently trading at 12.5 times forward earnings expectations, presenting a significant bargain for long-term investors [18]

Core Viewpoint - Warren Buffett's investment philosophy emphasizes holding outstanding businesses indefinitely, with a focus on companies like American Express and Coca-Cola as prime examples of "forever stocks" [1][3]. Group 1: Buffett's Forever Stocks - Buffett has invested approximately $138 billion in nine "forever stocks," with American Express and Coca-Cola being the longest-held [1][3]. - In his 2023 shareholder letter, Buffett added Occidental Petroleum to his "forever" list, highlighting its significant oil and gas holdings and advancements in carbon capture technology [3]. - The other five stocks included in Buffett's list are Japanese trading houses: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo, noted for their diversified business models [4]. Group 2: Performance Comparison - Over the last five years, Apple has outperformed all other stocks, while Occidental Petroleum has been the biggest winner among the group [7]. - Analysts project Occidental Petroleum will deliver the highest earnings growth next year, although the five Japanese stocks are not covered by analysts [7]. Group 3: Dividend Yields - Sumitomo offers the highest dividend yield at 3.33%, followed closely by Coca-Cola and Mitsubishi with yields of 3.09% [8]. - Coca-Cola is recognized as a "Dividend King," having increased its dividends for 63 consecutive years [8]. Group 4: Valuation Metrics - Sumitomo has the lowest forward price-to-earnings (P/E) ratio at 8.98, with Marubeni following at 11.65 [9]. Group 5: Overall Assessment - Marubeni ranks highly in both performance and valuation, with a dividend yield of 2.84% [10]. - Despite a reduced position in Apple, its long-term growth potential remains promising, particularly with rumors of new product introductions like a foldable iPhone and advancements in smart glasses and AI [11][12]. - Berkshire Hathaway maintains a significant stake in Apple, suggesting Buffett's continued confidence in the company [13].

Core Viewpoint - Berkshire Hathaway has sold its remaining stake in BYD, a Chinese electric vehicle manufacturer, after holding shares since 2008, which has led to a decline in BYD's stock price by over 6% in Hong Kong this week [1][4]. Group 1: BYD's Response and Market Reaction - BYD confirmed Berkshire's exit and expressed gratitude towards Warren Buffett and Charlie Munger for their long-term support, noting that Berkshire's gradual reduction of its stake began in August 2022, falling below 5% by June [2][3]. - BYD's Executive Vice President stated that Buffett and Munger appreciated BYD but emphasized that their selling was a normal investment practice [3]. - Despite BYD's positive remarks, the market reacted negatively, with a significant drop in BYD's share price following the news of Berkshire's divestment [4]. Group 2: Berkshire's Investment Strategy - While divesting from BYD, Berkshire Hathaway is increasing its investments in Japanese trading companies, with Mitsui confirming that Berkshire now holds over 10% of its voting rights [5]. - As of a March 17 disclosure, Berkshire held a 9.8% stake in Mitsui, valued at approximately $7.3 billion, and has since increased its stake to 10.2% in Mitsubishi [6]. - There is speculation that Berkshire's stakes in other Japanese companies, such as Itochu, Marubeni, and Sumitomo, may also have surpassed 10% [7].

Group 1 - Antamina mine in Peru plans to increase copper production by 20% to 450,000 tonnes in 2026 from an expected 380,000 tonnes in 2023, with stabilization around 400,000 tonnes annually thereafter [1][2] - The mine is undergoing a $2 billion expansion project, which has received environmental approval and will extend operations from 2028 to 2036, focusing on open pit expansion and optimization of dumps and tailings dam [2] - Antamina is a significant source of copper and zinc, co-owned by BHP Group, Glencore, Teck Resources, and Mitsubishi, with concentrates transported via a 300km pipeline to the port of Huarney [3] Group 2 - A tragic incident at Antamina's Yanacancha camp in April resulted in the death of a senior manager and injuries to another employee, leading to a full safety shutdown at the site [4]

Summary of Key Points from the Investor Presentation Industry Overview - **Industry Focus**: The presentation centers on the **autos and auto parts industries** in Japan, highlighting global competition, trends in electric vehicles (EVs) and automation, and supply chain transformations [1][2][3]. Core Insights - **Competition**: - There is **intensifying competition** within China, with Chinese OEMs expanding into overseas markets such as ASEAN, Europe, and South America [8][11]. - The competitive landscape in the US is also changing due to **US tariffs**, which are impacting market dynamics [8][11]. - **Electrification Trends**: - The penetration of **New Energy Vehicles (NEVs)** is increasing in China, with vehicles equipped with **Navigation on Autopilot (NOA)**, equivalent to Level 2+, becoming mainstream [8][11]. - Despite a temporary plateau in EV adoption in the US due to easing environmental regulations, the trend towards electrification and intelligent technologies remains strong [8][11]. - **Collaboration and Cost Management**: - There is a growing likelihood of **collaboration among OEMs** to manage development costs associated with electrification and intelligent technologies [8][11]. - The ability to pass on uncontrollable cost increases to OEMs is a critical consideration for the industry [8][11]. Risks and Challenges - **Emerging Local Competitors**: Local Chinese firms are emerging in advanced technology areas, posing a risk to established players [8][11]. - **Cost Burden**: The auto parts industry faces risks related to the cost burden of electrification, which may impact profitability [12][120]. Market Dynamics - **Sales and Market Share**: - Japanese OEMs are experiencing a significant decline in sales, with local Chinese companies gaining traction in advanced technology fields [120]. - The easing of US environmental regulations is delaying the decline in internal combustion engine (ICE) demand, affecting market dynamics [120]. Company-Specific Insights - **Valuation and Price Targets**: - Price targets and ratings for major Japanese OEMs were discussed, with Honda rated as Overweight (OW) with a price target of ¥2,000, indicating a 20% upside [12]. - Other companies like Nissan, Subaru, and Mazda have varying ratings and price targets reflecting their market positions and challenges [12]. Conclusion - The presentation emphasizes the need for Japanese OEMs to adapt to the rapidly changing competitive landscape, particularly in light of the expansion of Chinese manufacturers and the ongoing shift towards electrification and advanced technologies [8][11][120].