Quadrupled in four years—Buffett bets over $30 billion on Japanese stocks!

Buffett is making bold bets on the Japanese market. Latest data shows that Berkshire Hathaway’s holdings in Japan’s five major trading companies have surpassed $30 billion in value in recent weeks, and Buffett is still buying. Compared to the total value of $6.3 billion when Buffett first disclosed his approximately 5% stake on his 90th birthday on August 30, 2020, this figure has skyrocketed 392% to $31 billion. Reports indicate that Berkshire has continued to increase its holdings during this period, while the share prices of these five stocks have risen between 227% and 551%. Continued Accumulation, Breaking the 10% Ceiling Berkshire is steadily increasing its influence over Japan’s key trading companies. According to a press release from Mitsui & Co. on Thursday, Berkshire’s National Indemnity Company now holds 292,044,900 shares, representing a 10.1% equity stake. At Friday’s closing price, these shares are worth about $7.1 billion. Data shows Berkshire’s accumulation is ongoing. In March of this year, its stake in Mitsui stood at 9.7%. The latest disclosure means an increase of 2.3%. About two weeks ago, Mitsui announced Berkshire’s stake had exceeded 10% but did not specify the exact amount at the time. A similar situation occurred with Mitsubishi Corporation. According to Reuters and other media reports in late August, Mitsubishi confirmed that Berkshire’s stake had risen from 9.7% in March to 10.2%. For the other three companies—Itochu, Marubeni, and Sumitomo—there have been no recent disclosures since March, but the market generally expects Berkshire’s stakes may have approached or surpassed 10%. From $6.3 Billion to $31 Billion: Quadrupled Positions This investment success is exemplary. On August 30, 2020, Buffett’s 90th birthday, he first disclosed investments in five Japanese trading companies, each with about a 5% stake and a 12-month building period. At that time, the combined value was about $6.3 billion. Today, the total value of these investments has reached $31 billion, a 392% increase. This return comes from two components: Berkshire’s continued buying over the years, and the strong performance of the shares—the stock prices of these companies have surged by 227% to 551%. Buffett’s Investment Logic and Long-Term Commitment Buffett’s logic in choosing Japanese trading companies is clear and straightforward. In a 2023 interview with CNBC’s Becky Quick, he explained, in 2020 he was attracted to these stocks because “their prices seemed ridiculously low to me, especially considering interest rates at the time.” Initially, Buffett promised the five companies not to increase his stake beyond 10% without their permission. However, as the investment has paid off, the situation has changed. In his annual letter to shareholders this February, Buffett wrote: “As we approached that limit, all five companies agreed to moderately relax the restriction.” This shift has paved the way for Berkshire’s long-term holding strategy. Buffett added in the letter: “Over time, you may see Berkshire’s holdings in all five companies increase.” He further confirmed to shareholders that Berkshire plans to hold these shares “for 50 years or forever.” Risk Warning and Disclaimer The market carries risks; invest cautiously. This article does not constitute personal investment advice and does not take into account individual users’ specific investment objectives, financial situations, or needs. Users should judge whether any opinions, views, or conclusions in this article are appropriate for their particular circumstances. If you invest accordingly, you do so at your own risk.