According to recent reports, Warren Buffett’s Berkshire Hathaway has raised its stakes in five major Japanese trading houses, underscoring the billionaire investor’s growing confidence in the Japanese market.
Documents released by Japan’s Kanto Local Finance Bureau on Tuesday indicate that Berkshire’s ownership in these companies has risen by more than one percentage point each since June 2023. Mitsui & Co.’s stake increased from 8.09% to 9.82%, while Mitsubishi Corporation’s share grew from 8.31% to 9.67%. Marubeni Corporation, Sumitomo Corporation, and Itochu Corporation also experienced notable increases, with their stakes rising to 9.3%, 9.29%, and 8.53%, respectively.
This development aligns with Buffett’s latest annual letter to shareholders, where he hinted at expanding holdings in Japan’s top trading firms. The “Oracle of Omaha” noted that agreements had been reached with each company to potentially exceed the previous ownership cap of just under 10%.
Buffett’s interest in Japanese trading houses dates back to August 2020, when Berkshire acquired over 5% stakes in each of the five companies. Since then, the conglomerate has steadily expanded its positions.
Buffett’s investment strategy has had a significant impact, with the stock prices of these trading houses consistently growing. Notably, Itochu Corporation and Mitsubishi Corporation have surpassed a market capitalization of 10 trillion JPY (approximately $67 billion).
