Reported about 1 year ago
Warren Buffett has found success in investing in Japan by hedging currency risks. Japanese stocks have been flourishing, with the MSCI Japan Index gaining 87% in the past five years. Investors who followed Buffett's lead have benefitted from this diversification lesson. Despite the importance of understanding currency fluctuations, Buffett borrowed in yen at low rates to mitigate risks. The future of the yen depends on the Federal Reserve, influencing interest rate gaps between the U.S. and Japan. Individual investors can use currency-hedged Japanese ETFs to replicate Buffett's strategy and benefit from improving corporate governance and shareholder returns in the Japanese market.
Source: YAHOO