Warren Buffett's Q1 2025 Move: Why Marubeni Corp. Deserves a 50-Year Commitment

Warren Buffett's Berkshire Hathaway has long been synonymous with disciplined, long-term investing. In Q1 2025, Buffett doubled down on this philosophy by significantly increasing stakes in five Japanese trading houses, including Marubeni Corp. (MARUY). With ownership now exceeding 9% in this undervalued titan, Buffett's move signals a strategic bet on a company offering a rare blend of dividends, diversification, and deep value. Here's why investors should take note—and act now.

The Case for Marubeni: Value, Dividends, and Diversification

Marubeni isn't just another stock—it's a global conglomerate with fingers in nearly every economic pie. Operating across energy, infrastructure, agriculture, and technology, Marubeni's diversified portfolio shields it from sector-specific downturns. Buffett's focus on this company underscores three key advantages:

1. Undervalued Metrics: A Bargain at 12.8x P/E

Marubeni trades at 12.8x forward P/E, a steep discount to its five-year average of 14.5x and well below the S&P 500's 22x. This compression is irrational given the company's 14.2% ROE (outperforming peers) and ¥1.2 trillion in cash reserves. With Buffett's team now owning nearly 10%, this is a rare opportunity to buy a blue-chip asset at a deep discount.

2. 3.65% Dividend Yield: Cash Flow You Can Bank On

Marubeni's 3.65% dividend yield is a beacon in a market starved for income. Compare this to the MSCI Japan Index's 1.8% average, or even the S&P 500's 1.3%. The company has also expanded its buyback program to ¥70 billion, targeting a 4.2% reduction in shares outstanding to boost EPS further. For income investors, this is a no-brainer.

3. Global Scale with a Focus on Growth Sectors

Marubeni's next-gen investments—from Vietnamese aluminum recycling to carbon credit ventures—position it to profit from the energy transition. Meanwhile, its infrastructure arm is building pipelines and ports in regions where growth is surging. This isn't a relic of the past; it's a modern conglomerate leveraging its 140-year history to dominate new markets.

Navigating Near-Term Headwinds

Critics will point to Marubeni's Q1 2025 EPS miss (¥59.7 vs. forecasts of ¥67.1) as a red flag. But dig deeper:
- The miss stemmed from sector-specific headwinds, including falling commodity prices in mining and supply chain bottlenecks in logistics. These are temporary, not structural.
- ROE remains robust at 14.2%, and cash flow from operations hit ¥597.9 billion, proving resilience.
- The company's ¥70 billion buyback and ¥100 annual dividend per share (FY2026) demonstrate confidence in its long-term prospects.

Why Marubeni Beats the Motley Fool's “Hot Stocks”

While The Motley Fool's Q1 2025 picks (e.g., CrowdStrike, MercadoLibre, and Shopify) are undeniably exciting, they come with risks. High-growth stocks like Sezzle (SEZL) or Rubrik (RBRK) trade at sky-high valuations, and their success hinges on execution in volatile markets. Marubeni, by contrast, offers:
- Stability: A 30-year track record of paying dividends, even during recessions.
- Low Volatility: A beta of 0.8 versus the S&P 500's 1.0, meaning it's less prone to market swings.
- Buffett's Seal of Approval: A 50-year holding horizon isn't a slogan—it's a guarantee of quality.

The Bottom Line: Buy Marubeni Now—Before Buffett's Secret Is Out

Marubeni is a classic Buffett play: a deep-value stock with a moat of diversification, cash flows to spare, and a dividend yield that outshines bonds. While growth stocks grab headlines, Marubeni's 12.8x P/E and ¥100+ buyback make it a rare gem in today's market.

Act now, and you'll be sitting alongside Buffett—a man who's never sold a share of Coca-Cola—in an investment built to last generations. The next 50 years start today.

Disclosure: This analysis is for informational purposes only. Consult a financial advisor before making investment decisions.