Warren Buffett says konnichiwa to Japan: Why?

When Warren Buffett moves, the entire financial world sits up and takes notice. The investing icon, still going strong at 94, is arguably the most widely tracked man in global finance. Mint decodes his latest Japanese investments and what they may mean to investors.

- ABHISHEK MUKHERJEE

Berkshire bet

Warren Buffett's previous stake hikes in Japan's five trading houses boosted the main Japanese index, but the market is facing broader headwinds this time around.

1. What is Buffett's latest move in Japan?

The billionaire-led Berkshire Hathway earlier this week disclosed it had increased its shareholding in Japan's five biggest trading houses. The Omaha-based conglomerate hiked its stake in Mitsui to 9.82%, in Mitsubishi to 9.67%, in Itochu to 8.53%, in Marubeni to 9.3% and in Sumitomo to 9.29%. The stake increases ranged from 1 to 1.73 percentage points. Berkshire's Japanese holdings were valued at $23.5 billion at the end of 2024, compared with their aggregate cost of $13.8 billion. Berkshire first bought into the Japanese majors in July 2019, followed by stake hikes in 2020 and 2023.

2. What do these Japanese firms do?