For a man who built his empire on American businesses, Warren Buffett’s growing bet on Japan is turning heads. The 2024 Berkshire Hathaway annual report revealed that the firm has significantly increased its stake in Japan’s five leading trading houses—ITOCHU, Marubeni, Mitsubishi, Mitsui, and Sumitomo—bringing its total investment to $23.5 billion.
Buffett first started investing in these companies in 2019, drawn to their diversified business models and disciplined capital allocation. Since then, his admiration has only grown. “Greg [Abel] and I regularly follow their progress, and we like their management, their capital deployment, and their shareholder-friendly policies,” Buffett wrote.
Beyond equities, Berkshire has also expanded its yen-denominated borrowing, effectively hedging its currency exposure while enjoying Japan’s ultra-low interest rates. The company’s strategic patience—something Buffett has long championed—has allowed it to reap significant gains, with annual dividend income from the Japanese holdings now projected at $812 million, while interest costs on yen debt remain a mere $135 million.
As Berkshire enters a new era, its international footprint is growing. With U.S. valuations running high, Japan’s disciplined conglomerates offer the kind of long-term value Buffett has always cherished. And it’s clear that even as he hands over the reins, his global vision will continue shaping Berkshire Hathaway’s future.