Core Viewpoint - Warren Buffett's confidence in the Japanese market is highlighted, with a commitment to long-term investment in Japanese stocks, particularly in five major trading companies, amounting to $23.5 billion by the end of 2024, with an annual return rate of 15.3% [1][2] Group 1: Foreign Investment in Japan - In April, foreign investors purchased a record ¥8.21 trillion (approximately ¥4,066 billion) worth of Japanese stocks and bonds, marking the largest monthly net inflow since 1996 [2][3] - The influx of foreign capital is attributed to the impact of U.S. tariff policies, which have led to a loss of confidence in dollar assets, making Japan an attractive financial haven [2][3] Group 2: Market Dynamics and Investor Sentiment - Key changes in the Japanese stock market include corporate governance reforms initiated by the Tokyo Stock Exchange and Buffett's announcement of increased investments in Japanese trading companies [3][4] - Analysts suggest that Buffett's long-term investment strategy reflects a belief in Japan's economic recovery and improvements in corporate governance [3][4] Group 3: Economic Challenges - Despite the positive sentiment, Japan's economic fundamentals remain uncertain, with a reported GDP decline of 0.2% in Q1 2025, marking a return to negative growth after a year [6][7] - Factors contributing to this decline include weak personal consumption and external demand, exacerbated by rising prices impacting consumer confidence [6][7] Group 4: Future Outlook - Analysts express concerns about Japan's economic recovery, citing ongoing inflation pressures and the potential for a "double blow" from U.S. tariffs and domestic economic challenges [8][9] - The long-term growth prospects for Japan's economy are questioned, with issues such as an aging population and stagnant productivity posing significant risks [12]