When Warren Buffett buys something, the market usually does not ask “Why?” but just adds it to the investment portfolio. This time is no different. Berkshire Hathaway has increased its stake in Japanese trading giant Mitsui & Co., now owning more than 10% of the company. Besides, Buffett does not rule out expanding that stake even further.
The market reacted instantly — Mitsui shares jumped 2.2%. Other Japanese trading houses — Mitsubishi, Itochu, Marubeni, and Sumitomo — also saw their stocks rise in sync.
Interestingly, Buffett’s bet on Japan did not start yesterday. Back in 2020, Berkshire first disclosed stakes in five of Japan’s largest trading companies. These firms are hyper-diversified: their portfolios include everything from natural gas and mining to telecom and even salmon farming.
That kind of business model is typical for Japan’s “sogo shosha” — broad-profile trading companies. It is a big part of their appeal. Such broad diversification helps them weather market turbulence with minimal damage. And that is exactly the kind of setup Buffett likes: strong, boring, and reliable businesses. Well, they are boring until they start bringing in billions.
Mitsui was not the only company on Berkshire’s radar. Buffett also raised his stake in Mitsubishi Corporation, which likewise crossed the 10% threshold. As always with Buffett, these moves came with maximum calm and minimal noise, sending a clear-cut message to the Japanese market: if Buffett is buying, it means a long-term vote of confidence.
