Berkshire Hathaway has increased its stakes in Sumitomo Corp. and Marubeni Corp. to 10.05 percent and 10.1 percent respectively, bringing it over the 10 percent threshold in all five major Japanese trading houses: Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo.
By the end of 2025, Berkshire's total investment cost in these five firms stood at $15.4 billion. The market value of these holdings had climbed to $35.4 billion, reflecting $20 billion in unrealized gains since initial investments.
These diversified companies operate across energy, commodities, logistics and technology. Their business models emphasize disciplined capital allocation, strong management and shareholder returns through dividends and buybacks—tenets aligned with Berkshire's investment philosophy.
Several structural factors support the thesis that Japanese equities remain undervalued relative to U.S. peers. Corporate governance reforms have enhanced transparency and capital efficiency. Japanese equities trade at multiples below U.S. counterparts, offering superior long-term return potential.
Berkshire financed the expansion using yen-denominated bonds, reducing currency risk while capitalizing on Japan's low borrowing costs. Favorable yen-dollar exchange rate movements have contributed billions in after-tax gains.
Berkshire Hathaway Chief Executive Officer Greg Abel said the conglomerate intends to hold its stakes in the firms for many decades. Abel also indicated the company is building relationships with each trading house and exploring other opportunities in Japan and abroad. He noted that rising bond yields do not pose a significant issue for the trading houses, citing their robust business models and strong balance sheets.
Berkshire is also planning to invest nearly $1.8 billion in Tokio Marine Holdings, expanding its Japanese footprint beyond the trading houses.
BRK.B shares have gained 3.8 percent year to date, underperforming the broader industry. The stock trades at a price-to-book value ratio of 1.43, above the industry average of 1.33.
Analyst consensus estimates for BRK.B's 2026 and 2027 revenues indicate year-over-year increases. However, 2026 EPS consensus suggests a decline, while 2027 estimates forecast an increase, presenting a mixed near-term outlook. Consensus estimates for second-quarter and third-quarter 2026 earnings per share have remained unchanged over the past 30 days.
