Berkshire Hathaway Boosts Japanese Trading House Stakes to $35.4 B Under Greg Abel

Key Points

• Berkshire Hathaway increased its stakes in Mitsubishi, Sumitomo and Marubeni during the second quarter of 2025, according to Japanese regulatory filings.

• The conglomerate’s five Japanese trading‑house investments now total $15.4 billion in cost and $35.4 billion in market value at the end of 2025.

• Funding for the acquisitions comes from yen‑denominated borrowing at an average interest rate of roughly 1.2%, providing a low‑cost capital base.

Since Greg Abel assumed the role of Berkshire Hathaway CEO at the start of the year, investors have been watching how he will allocate the conglomerate’s war chest. Recent filings with Japanese regulators have already shown a clear direction: expanding the company’s Japanese portfolio.

Berkshire’s positions have risen across three of the five major Japanese trading houses. The Mitsubishi stake climbed to 11.1% by April 30, while Sumitomo’s ownership reached 10.3% by May 12, up from 9.3%, and Marubeni also saw an upward revision.

These three additions bring Berkshire’s total holdings in Japanese trading houses to five firms (the others being Itochu and Mitsui, which were first acquired in 2019 under Warren Buffett). The original strategy has already delivered strong returns, and the recent buys suggest confidence in the long‑term outlook.

Image source: The Motley Fool.

1. Mitsubishi

Mitsubishi remains Berkshire’s largest Japanese position. The sogo‑shosha conglomerate operates across a broad array of businesses worldwide. At the end of 2025, Berkshire owned 10.8% of Mitsubishi, a stake that cost $4.2 billion and was valued at $9.2 billion. The investment generated $273 million in dividends for Berkshire in 2025, the highest payout among the five trading houses.

2. Marubeni

Marubeni has been the best performer in Berkshire’s Japanese portfolio. The stake cost roughly $1.6 billion and grew to about $4.5 billion by the close of 2025—nearly a tripling of its value. It also contributed $105 million in dividends last year.

Berkshire held 9.8% of Marubeni at year‑end. Recent buying pushed the ownership above the 10% threshold.

Abel’s latest allocations therefore favored Berkshire’s top‑performing Japanese asset.

3. Sumitomo

Sumitomo completes the trio of new purchases. Berkshire’s position cost $1.9 billion and stood at $4.0 billion at the end of 2025, while delivering $102 million in dividends. The May filing shows Berkshire’s stake at 10.3%, a full percentage‑point increase.

Impressive gains

Across the five Japanese trading houses, Berkshire’s total investment now totals $15.4 billion in cost and $35.4 billion in market value at the end of 2025. The combined dividend payout for the year was $862 million, equating to an approximate 5.6% yield on the original outlay.

Comparing 2025 with the prior year, Berkshire added about $1.6 billion of new capital while the market value of its stakes rose by nearly $12 billion. The gap between purchase price and current value continues to widen.

Funding is inexpensive. Berkshire borrowed roughly the equivalent of its yen investment at an average interest cost of just 1.2%, meaning dividends cover borrowing expenses several times over before any share‑price appreciation is realized.

The strategy remains active. In April, Berkshire issued an additional 272.3 billion yen of senior notes, reinforcing its capacity to fund further acquisitions. Buffett noted in his February 2025 shareholder letter that the five Japanese firms have agreed to relax the historic 10% ownership ceiling, suggesting that the positions can be scaled up over the long term. He expressed confidence that Greg Abel and his successors will hold the Japanese stakes for decades.

In his first annual letter as CEO, Abel placed the Japanese investments on par with Berkshire’s flagship U.S. holdings, describing them as “comparable to our major U.S. holdings in importance and long‑term value‑creation opportunity.”

For shareholders, Abel’s early moves signal a disciplined focus on profitable, dividend‑paying conglomerates acquired at attractive prices and financed with low‑cost debt, rather than chasing the market’s latest trend.

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