Berkshire Weighs Raising Stakes in Japan’s Five Biggest Trading Houses to 15%

Berkshire is considering raising its stakes in Japan’s five biggest trading houses from 10% to 15% each, according to a report.
Bloomberg said the Japanese trading houses’ portfolios are diversified across a broad range of stable industries, much like Berkshire Hathaway’s own.
As Berkshire has continued buying yen-denominated bonds, Chairman Masahiro Okafuji said the company’s role could create potential conflicts of interest.

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Berkshire Hathaway is considering increasing its stakes in Japan’s five biggest trading houses — Mitsubishi Corp., Sumitomo Corp., Mitsui & Co., Marubeni Corp. and Itochu Corp. — from 10% to 15% each, Bloomberg reported on Sept. 17.

Warren Buffett, the former Berkshire Hathaway chairman known as the Oracle of Omaha, has steadily expanded the company’s holdings in the five Japanese trading houses since 2020. Bloomberg said the investments appeal to Berkshire because the companies’ portfolios are diversified across a broad range of stable industries, much like Berkshire’s own.

Greg Abel, Buffett’s successor and Berkshire’s chief executive officer, held a series of meetings in Japan with executives from the trading houses earlier this month. Berkshire has also continued buying yen-denominated bonds.

Masahiro Okafuji, chairman of Itochu Corp. and chairman of the Japan Foreign Trade Council, told Bloomberg he met Abel earlier this month.

Japan’s general trading companies still have relatively limited networks with global corporations, Okafuji said, adding that Berkshire has been a major help on that front.

He also said potential conflicts of interest could arise because Berkshire is both an investor and a shareholder.

Lee Mi-a, Hankyung.com reporter mia@hankyung.com