Mint Primer | Warren Buffett says konnichiwa to Japan: Why?

Subscribe to enjoy similar stories. The billionaire-led Berkshire Hathway earlier this week disclosed it had increased its shareholding in Japan’s five biggest trading houses. The Omaha-based conglomerate hiked its stake in Mitsui to 9.82%, in Mitsubishi to 9.67%, in Itochu to 8.53%, in Marubeni to 9.3% and in Sumitomo to 9.29%.

The stake increases ranged from 1 to 1.73 percentage points. Berkshire’s Japanese holdings were valued at $23.5 billion at the end of 2024, compared with their aggregate cost of $13.8 billion. Berkshire first bought into the Japanese majors in July 2019, followed by stake hikes in 2020 and 2023.

These five industrial powerhouses are among Japan’s oldest and biggest sogo shosha, or general trading houses which trade in a wide range of goods and commodities, from electronics, hardware, textiles, and automobiles to oil and gas, metals, minerals, and even noodles. They are also engaged in financial services, specialty chemicals, infrastructure and other vital industries. While these conglomerates have a strong focus on serving the domestic market, they are also responsible for a chunk of the country’s exports, and are key parts of the global supply chain in multiple sectors.

Japan has underperformed since the 1990s. The world’s fourth-largest economy grew at an annualized pace of 2.2% during Oct-Dec 2024, and analysts say Trump’s tariffs will bring fresh headwinds. But Buffett has said in the past, his investments are based on a company’s fundamentals, and should not be construed as macroeconomic endorsements.