Warren Buffett-Backed Japanese Trading Stocks Surge As Tokyo Market Digest Berkshire's Increased Stake

Shares of Japan’s five major trading houses soared on Tuesday on the Tokyo exchange after Warren Buffett‘s Berkshire Hathaway Inc. BRK BRK increased its stakes in the companies.

What Happened: National Indemnity, a wholly owned unit of Berkshire Hathaway, disclosed in filings with Japan’s securities regulator that it had raised its stake in Mitsubishi from 8.31% to 9.67% and in Mitsui from 8.09% to 9.82%. Berkshire also increased holdings in Itochu, Marubeni, and Sumitomo by approximately one percentage point each.

Japan’s Trading Firms Surge as Berkshire Hathaway Increases Stakes:

The increased investments follow Berkshire’s recent negotiations to “moderately relax” the previously agreed 10% investment cap, though none of the holdings has exceeded this threshold.

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Why It Matters: These trading firms are vital to Japan’s economy, importing essential raw materials including oil, gas, and metals while supporting the country’s machinery export, automobile, and electronics sectors.

Buffett, often called the “Oracle of Omaha,” first disclosed investments in these trading houses in 2020. In his annual shareholder letter last month, he highlighted his increasing appreciation for the companies. By the end of 2024, the market value of Berkshire’s Japan holdings had risen to $23.5 billion.

While expanding its Japanese investments, Berkshire has accumulated a record cash reserve of $334.2 billion after selling off equities more broadly.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.