Berkshire Hathaway Boosts Stake in Mitsubishi, Mitsui, Stocks Surge

Berkshire Hathaway, the investment conglomerate led by Warren Buffett, has increased its stake in two prominent Japanese trading companies, Mitsubishi Corporation and Mitsui & Co. This strategic move has bolstered the stock prices of these companies, reflecting the market's renewed confidence in the Japanese trading sector.

Mitsubishi Corporation announced that Berkshire Hathaway's voting rights in the company have risen from 9.74% in March to 10.23%. Similarly, Mitsui & Co. disclosed that Berkshire Hathaway has also increased its stake in the company. This development follows Buffett's initial disclosure in 2020 of his investments in Japanese trading companies, known as "sogoshosha" in Japanese. These companies have since focused more on shareholder returns and have adjusted their investment portfolios to reduce exposure to volatile sectors such as natural resources.

Mitsui & Co. spokesperson stated that the increase in Berkshire Hathaway's stake is seen as a sign of continued trust in the company. The spokesperson also noted that Berkshire Hathaway's voting rights in Mitsui & Co. have not yet exceeded 10%. As of March, Berkshire Hathaway held 9.82% of Mitsui & Co.'s shares.

Berkshire Hathaway currently holds stakes in five major Japanese trading companies, including Marubeni Corporation, Itochu Corporation, and Sumitomo Corporation. These companies operate in a wide range of industries, from overseas oil and gas to salmon farming and convenience stores.

Analysts view Berkshire Hathaway's continued investment in these companies as a positive signal for the market. The companies are increasingly focusing on enhancing shareholder returns through measures such as stock buybacks. According to Buffett's annual letter to shareholders in February, Berkshire Hathaway initially planned to keep its stake in Japanese trading companies below 10%, but the companies have agreed to moderately raise this limit.

Berkshire Hathaway applied to the Federal Energy Regulatory Commission (FERC) in early May to increase its stake in Japanese trading companies. The FERC approved the transaction earlier this month. Itochu Corporation spokesperson mentioned that while the company has not confirmed Berkshire Hathaway's additional stake, they understand that the final holding will be around 10%, consistent with other trading companies. Sumitomo Corporation spokesperson stated that the company has not confirmed whether Berkshire Hathaway's stake has exceeded 10%. Marubeni Corporation spokesperson declined to comment on the matter.