New Delhi, September 21 (Patrika English News): Billionaire investor Warren Buffett has increased his investment in two Japanese trading giants, Mitsubishi and Mitsui, adding more than $400 million in late August through Berkshire Hathaway’s insurance arm, National Indemnity.
Buffett, known for his long-term approach, first bought into Japan’s five major trading houses in 2019. He has since reiterated in his 2023 letter to shareholders that Berkshire intends to hold these investments indefinitely.
Mitsubishi, a global conglomerate with holdings in energy, natural resources, retail and automotive, saw its stake rise by half a percentage point. The purchase was estimated between $400 million and $450 million based on share prices at the time. The company owns a 50% stake in Japan’s Lawson convenience stores and also has a strong energy portfolio.
Mitsui, another leading Japanese trading house, also received additional investment. Its businesses are heavily weighted toward liquefied natural gas, natural resources and metals, along with a 20% stake in Penske Automotive Group.
Both companies continue to trade at relatively low valuations compared to global peers. Mitsubishi trades at under 1.5 times book value, while Mitsui remains closer to 1.25 times. Analysts say fears over tariffs weighed on the valuations, but the recent U.S.-Japan trade agreement has lifted some of that pressure.
Buffett has praised Japan’s trading houses for their strong balance sheets, conservative capital allocation, and management style, comparing them to Berkshire Hathaway itself. He expects his successor, Greg Abel, to continue building partnerships with these companies in the future.
With Berkshire already permitted to cross 10% ownership in all five major Japanese trading houses, further investments remain possible.