Berkshire Hathaway Explores Increasing Stake in Japan's Top Five Trading Houses

Berkshire Hathaway is reportedly reviewing plans to increase its stake in Japan’s top five trading companies—Mitsubishi Corporation, Sumitomo Corporation, Mitsui & Co., Marubeni Corporation, and Itochu Corporation—from 10% to 15% each, according to a Bloomberg report on Thursday (local time).

Known as the 'Oracle of Omaha,' Warren Buffett began gradually increasing his stake in these five Japanese trading houses starting from 2020. Bloomberg noted that their portfolios are diversified across stable and varied industries, which aligns with Berkshire Hathaway's investment approach.

Berkshire Hathaway CEO Greg Abel, Buffett’s successor, recently met with executives of the companies during a trip to Japan earlier this month. The company has also continued purchasing yen-denominated bonds.

Atsuhiro Okafuji, chairman of Itochu Corporation and president of the Japan Chamber of Commerce and Industry, told Bloomberg that he met with Abel earlier this month. Okafuji noted that Japanese trading houses still have limited global networks compared to other multinational corporations but added that they are receiving significant support from Berkshire Hathaway in this area.

However, Okafuji also cautioned that as Berkshire Hathaway is an investor and shareholder, there could be potential conflicts of interest.