Warren Buffett’s Berkshire Hathaway has increased its stake in Japan’s Mitsubishi Corp to 10.23%, crossing a symbolic ownership threshold and deepening the conglomerate’s presence in the Japanese trading house sector.
This latest move, executed through Berkshire’s wholly-owned subsidiary National Indemnity Company, raised stakes from 9.74% previously and reaffirms Buffett’s bullish stance on Japan’s multifaceted trading corporations.
Berkshire’s strategic expansion in Japanese markets
Berkshire Hathaway’s incremental purchases in Mitsubishi and Japan’s other sogo shosha (trading houses) date back to July 2019.
The company, under Warren Buffett’s guidance, now holds significant stakes in five major firms: Mitsubishi Corp, Mitsui & Co, Itochu Corp, Marubeni Corp, and Sumitomo Corp.
This strategy is underpinned by a yen-denominated debt funding approach, allowing Berkshire to borrow at low Japanese interest rates while benefiting from robust dividend yields and limiting currency risk exposure.
The conglomerate’s Japanese holdings have swelled in value—from an initial outlay of approximately $6 billion to a market value topping $23.5 billion as of late 2024.
This steadily growing share is a testament to Berkshire’s confidence in Japan’s trading houses, which manage vast portfolios covering materials, energy, logistics, and emergent tech investments.
Market reaction and impact on Japanese industry
News of Berkshire’s stake increase triggered an immediate 2.5% surge in Mitsubishi Corp’s stock price, outpacing the broader Nikkei 225 index and reinforcing market optimism for the sector.
Buffett’s investments have proven to be catalysts for Japanese trading house shares in 2025, driving fresh interest from both foreign and domestic investors.
Analysts continue to highlight the value opportunity in Japanese trading houses, noting their single-digit price-earnings ratios compared to stretched valuations in the US.
These companies, often described as the backbone of Japan’s supply chain and resource flows, are now being recognised globally for their capital discipline and consistent shareholder returns.
Governance reforms and long-term outlook
Berkshire’s crossing of the 10% ownership threshold marks more than just a statistical milestone.
It sends a strong signal about the direction of Japanese corporate governance, with Buffett’s approach advocating for increased transparency, board diversity, and capital efficiency.
Berkshire has pledged not to surpass 20% ownership nor to seek hands-on control, yet its influence is already visible in boardrooms and shareholder policies.
Looking forward, Berkshire Hathaway’s strategy appears to be built for patience—Buffett has described these Japanese positions as likely to be held for decades, with successor Greg Abel maintaining frequent contact with company executives.
By leveraging cheap financing, disciplined capital allocation, and a collaborative approach to governance, Berkshire is set to benefit from the long-term stability and innovation within Japan’s diversified trading houses.
Warren Buffett’s latest purchase not only elevates Berkshire Hathaway’s stake in Mitsubishi Corp above 10%, but also signals a broader commitment to Japan’s market and a model for shareholder engagement.
This move continues to shape industry sentiment, drive competitive valuations, and foster structural reform within one of Asia’s largest economies.
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