Berkshire Hathaway has significantly deepened its commitment to Japanese trading houses, with holdings in five major firms now exceeding $30 billion. This substantial investment underscores Warren Buffett’s enduring confidence in the Japanese economic landscape and its corporate structures, particularly the specialized business model of sogo shosha, or general trading companies.
Since first disclosing its initial 5% stakes in August 2020, Berkshire’s investment in these entities has seen remarkable growth. The total value of these positions has surged by approximately 392%, reaching the current $31 billion mark. This impressive appreciation is a product of both consistent capital deployment by Berkshire Hathaway and substantial gains in the underlying stock prices, which have ranged from 227% to over 550% for the individual companies. It is also worth noting that the disclosed figures may not reflect all recent acquisitions, suggesting the total investment could be even higher.
Buffett Surpasses Key Thresholds in Major Japanese Firms
Within this expanded portfolio, Berkshire Hathaway has notably increased its ownership in Mitsui and Mitsubishi, crossing the significant 10% ownership threshold in both. Mitsui, in a recent disclosure, confirmed that Berkshire’s subsidiary, National Indemnity, held 292,044,900 shares as of September 30th. Valued at approximately $7.1 billion at the close of the following Friday, this stake represents a 10.1% ownership, establishing National Indemnity as Mitsui’s largest shareholder. This represents an increase from March of the same year, when Berkshire held a 9.7% stake. Mitsui’s announcement followed a similar disclosure from Mitsubishi two weeks prior, indicating Berkshire’s voting rights in that company had also surpassed 10%. While updates on Berkshire’s holdings in Itochu, Marubeni, and Sumitomo have not been publicly detailed, market observers anticipate similar increases.
Long-Term Strategy and Valuation Appeal
Buffett’s commitment to these Japanese trading houses is characterized by a long-term perspective, with stated intentions to hold these investments for “50 years or forever.” This strategic approach was facilitated by an agreement with the trading companies themselves. Initially, Buffett had pledged not to exceed 10% ownership without their consent. However, as Berkshire neared this limit, the firms mutually agreed to modestly adjust the ceiling, allowing for further capital deployment. Buffett has previously articulated his attraction to these investments, citing their undervaluation relative to prevailing interest rates at the time of his initial investments. This fundamental valuation appeal, combined with their unique business models and potential for sustained growth, continues to underpin Berkshire’s significant capital allocation to this sector.
Michael Carter holds a BA in Economics from the University of Chicago and is a CFA charterholder. With over a decade of experience at top financial publications, he specializes in equity markets, mergers & acquisitions, and macroeconomic trends, delivering clear, data-driven insights that help readers navigate complex market movements.