NEW YORK, Feb 22 (Reuters) - Warren Buffett said on

Saturday that his conglomerate Berkshire Hathaway ( BRK/A ) will

likely increase its ownership in the five Japanese trading

houses it holds.

In his annual letter to Berkshire shareholders, the billionaire

investor said Itochu ( ITOCF ), Marubeni ( MARUF ), Mitsubishi ( MSBHF )

, Mitsui ( MITSF ) and Sumitomo ( SSUMF ) agreed to

"moderately relax" limits that capped Berkshire's ownership

stakes below 10%.

Berkshire's investments in the companies totaled $23.5

billion at the end of 2024.

"Over time, you will likely see Berkshire's ownership of all

five increase somewhat," Buffett wrote.

The 94-year-old Buffett also said he and Berkshire Vice

Chairman Greg Abel, his designated successor as chief executive,

are investing for the "very long term."

"I expect that Greg and his eventual successors will be

holding this Japanese position for many decades and that

Berkshire will find other ways to work productively with the

five companies," Buffett wrote.

Known as "sogo shosha," Japanese trading houses trade in a

wide variety of materials, products and food, often serving as

intermediaries, and provide logistical support.

They are also deeply involved in the real economy in such

areas as commodities, shipping and steel.

Berkshire began investing in the trading houses in 2019,

drawn by their finances compared to their low stock prices, and

revealed 5% ownership stakes on Buffett's 90th birthday in

August 2020.

Buffett prefers to avoid businesses he says he does not

understand.

He told Nikkei in 2023 that the trading houses are "really so

much similar to Berkshire," the Omaha, Nebraska-based

conglomerate he has led since 1965.

Berkshire spent $13.8 billion on its current holdings and

expects $812 million of dividend income in 2025, Buffett said in

the shareholder letter.

"This was a good value investment when others may have

looked at them as value traps," said Cathy Seifert, an analyst

at CFRA Research who rates Berkshire a "hold."

She said Buffett's comments show Berkshire has a positive

working relationship with the trading houses.

Berkshire has also issued fixed-rate, yen-denominated bonds,

but Buffett said it seeks "currency neutrality" and has no view

on future currency changes.

The conglomerate on Saturday reported $1.15 billion of

foreign currency gains after taxes in 2024.