Berkshire Hathaway increases stakes in Mitsui and Mitsubishi, signaling Buffett’s long-term confidence in Japan’s trading giants and global partnerships.
Warren Buffett’s Berkshire Hathaway has expanded its holdings in two of Japan’s biggest trading houses, investing an estimated $170 million as part of a long-term strategy to strengthen ties with Japanese industry.
The purchases, made through Berkshire’s insurance arm, National Indemnity, increased the conglomerate’s stakes in Mitsui & Co. and Mitsubishi Corp. to about 10.1% and 10.2%, respectively. The transactions took place between March and September, based on filings in Japan and current exchange rates.
The move marks Buffett’s continued commitment to Japan’s “sogo shosha,” or general trading firms, which he first began investing in back in 2019. Berkshire now holds roughly 10% stakes in all five major trading houses — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — and has received permission to raise its holdings even further.
At Berkshire’s annual shareholder meeting in Omaha, Buffett and Vice Chairman Greg Abel described the investments as long-term holdings, saying the company intends to keep them for at least 50 years. Buffett, who has often said his favorite holding period is “forever,” praised the firms for their strong management, solid balance sheets, and diversified global businesses.
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“These are exceptionally well-run companies,” Abel said, adding that Berkshire hopes to build deeper business partnerships with them in the coming decades. “We really do hope to do big things with them.”
The five trading houses, often compared to industrial conglomerates, are deeply involved in sectors ranging from energy and metals to finance and technology. Their global networks and investment acumen align closely with Berkshire’s philosophy of owning stakes in companies that can generate stable cash flows across generations.
Both Mitsui and Mitsubishi remain relatively inexpensive by global standards. Mitsubishi trades at about 1.5 times book value, while Mitsui is at 1.4 times, metrics considered attractive compared to large U.S. companies. The MSCI Japan Index also continues to trade below its 30-year average, offering value investors a favorable landscape.
The $170 million investment comes amid a broader repositioning of Berkshire’s portfolio. Since late 2022, the company has sold more than $200 billion in stocks while acquiring just a fraction of that amount, focusing on long-term, high-quality assets.
For Buffett, Japan’s trading houses appear to be just that — enduring businesses he believes can stand the test of time.
