Berkshire Hathaway (BRK.A / BRK.B) has increased its stake in Japan’s largest trading houses, a move that is expected to bolster the Tokyo stock market.
Regulatory filings show that Berkshire raised its stake in Mitsubishi Corp. (MSBHF), Marubeni Corp. (MARUY), Mitsui & Co. (MITSY), Itochu Corp. (ITOCY) and Sumitomo Corp. (SSUMY).
Berkshire increased its average holding across the five stocks by about one percentage point to 9.3%, according to the filings.
Warren Buffett, Berkshire’s chairman, has said the trading houses have agreed to relax a previous ceiling of 10% on his stakes, leaving room for him to buy more stock in the companies.
His previous purchases in the trading houses occurred in 2020 and 2023, and each time news of the buying boosted Japanese equities.
However, some analysts are saying that Buffett’s purchases this time could have a more muted impact as stock markets in Japan and around the world struggle with trade tariffs and weakening global economic growth.
Mitsubishi said that Berkshire likely increased its stake on the company’s long-term growth expectations, and that it continues to engage in discussions on ways to collaborate with Buffett.
Itochu said it expects Buffett’s stake to increase further, while Marubeni said it welcomed the new investment.
Japan’s leading Nikkei 225 index has dropped more than 6% this year. Meanwhile, in the U.S., the S&P 500 has fallen into a correction defined as a decline of 10% from recent highs.
Berkshire Hathaway now owns just under 10% in each of the five Japanese trading houses.
Formed after World War II, the “sogo shosha,” or trading houses, are large conglomerates housing a wide array of businesses ranging from automakers to logistics.
The trading houses also function like private equity (PE) in Japan, making big investments across a diverse number of economic sectors.
Buffett has said that the Japanese trading houses are structured and function in a manner similar to Berkshire Hathaway.
Berkshire’s more affordable Class B stock is trading at $514.60 U.S. per share, having risen 14% so far this year.
