Berkshire Hathaway Plans Increased Stakes in Japanese Trading Houses

Berkshire Hathaway, led by Warren Buffett, plans to gradually increase its ownership in Japan's five major trading houses—Mitsubishi, Mitsui, Itochu, Sumitomo, and Marubeni—after these firms agreed to moderately relax the previous ownership cap of 10%. In his annual letter to shareholders, Buffett emphasized the importance of these companies, known as 'sogo shosha,' for their broad business strategies and involvement in commodities and logistics. Berkshire's investments in these firms totaled $23.5 billion at the end of 2024, with expectations of $812 million in dividend income for 2025. Buffett noted that he and his successor, Greg Abel, are committed to holding these positions for the long term, viewing them as complementary to Berkshire's own operations. Analysts see this move as a strategic investment given the robust financials and low valuations of these trading houses. Buffett's approach reflects his preference for businesses he understands, further solidifying Berkshire's commitment to this sector.