Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) is reportedly considering bigger stakes in Japan’s five largest trading houses as CEO Greg Abel shrugs off concerns over rising Japanese bond yields.
Abel told Nikkei Asia on Thursday that the company is contemplating increasing its stakes in Mitsubishi Corp. (OTC:MTSUY), Itochu Corp (OTC:ITOCY), Mitsui & Co. Ltd. (OTC:MITSY), Sumitomo Corp. (OTC:SSUMY), and Marubeni Corp (OTC:MARUY). The firm is also exploring potential joint ventures and mergers with these companies globally.
Abel was in Tokyo for his inaugural visit since becoming CEO in January, where he met with leaders of Berkshire’s Japanese investments.
“Our objective is to continue to augment our ownership [of the Japanese trading firms],” stated Abel, expressing his confidence in the companies’ performance and growth potential.
Abel said Berkshire Hathaway’s investment decisions would be made at its Omaha headquarters, where executives would assess market conditions and potentially increase holdings in companies they favor.
Abel said Berkshire’s trading-house partnerships are generating new investment ideas, including potential acquisition targets, and hinted at opportunities beyond the trading houses and insurer Tokio Marine.
Abel Downplays Japan Yield Risks
On Wednesday, Abel told CNBC that rising Japanese bond yields are not currently a major challenge for the five major trading houses that Berkshire owns. Despite Japan’s 10-year yield reaching a 30-year high above 3%, Abel said the firms view rates as manageable.
Berkshire also intends to continue issuing yen debt and sees its Japanese investments as long-term holdings.
“Not a single one of the trading companies raised it as a fundamental challenge right now…They’re still relatively modest when you think about it,” Abel said.
Berkshire’s Japan Bet Deepens
Berkshire increased its stake in Mitsubishi Corp. to 10.23% from 9.74% in August 2025, signaling deepening confidence in Japanese trading houses. The move was executed by Berkshire’s wholly-owned subsidiary, National Indemnity Company, as part of a broader Japanese investment strategy.
The company now owns more than 10% of each of Japan’s five largest trading houses.
The journey with the five Japanese trading houses began with former CEO Warren Buffett‘s unique ability to spot value in unexpected places. Buffett discovered these companies in a small Japanese handbook, Kaisha Shikiho, a quarterly guide locally regarded as the “bible of Japanese equities.” “They were selling at ridiculously low prices. So I spent about a year acquiring them,” he recalled.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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