Berkshire Hathaway has strengthened its investments in Japan’s premier trading firms, just weeks following Warren Buffett’s highly anticipated annual communication to shareholders, which hinted at potential escalations in these stakes.
Recent disclosures to Japan’s Finance Ministry reveal that the Omaha-based conglomerate has upped its shares in Mitsubishi Corp. (+2.54%), Marubeni Corp. (+1.63%), Mitsui & Co. (+1.47%), Itochu Corp. (+1.62), and Sumitomo Corp. (+2.31%).
These developments align with Buffett’s previous statements in February indicating a strategic intent to deepen involvement with these giant trading entities. This bold move further underscores Berkshire’s growing interest in Japan’s complex trading landscape, highlighting a long-term investment strategy in one of the world’s most robust markets.
Warren Buffett’s Berkshire Hathaway initially invested in the five major Japanese trading firms back in 2020. Since Buffett’s involvement, these trading houses have consistently outperformed the Nikkei 225, owing not only to a surge in commodity prices in 2022 but also their expansive business operations which provide resilience against market fluctuations.
Buffett has commended the Japanese trading houses for their prudent dividend increases, sensible share buybacks, and restrained executive compensation compared to American firms.
In February, Mitsubishi reported ongoing talks with Berkshire over potential collaboration projects and joint ventures. Similarly, Mitsui expressed intentions to engage in further discussions with Buffett’s conglomerate.
