Berkshire lifts stakes above 10%

Berkshire Hathaway just pushed two more of its big Japan bets over an important line. Its stakes in Sumitomo Corp. and Marubeni now sit above 10%, which means Berkshire has crossed that threshold in all five of Japan’s giant trading houses. That matters because these are not side bets anymore. They are turning into one of Berkshire’s biggest and most durable non-U.S. positions. (asia.nikkei.com) ### Which companies are we talking about? They are the five big sogo shosha — Itochu, Marubeni, Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp. These are sprawling Japanese trading groups that touch commodities, energy, food, machinery, logistics, finance, and industrial projects. Berkshire started buying them in 2020, and by March 2025 had lifted all five holdings to roughly the 8.5% to 9.8% range. Now Sumitomo and Marubeni have joined Mitsubishi, Mitsui, and Itochu above 10%. (bloomberg.com) ### Why does 10% matter so much? Because 10% is both symbolic and practical. Symbolically, it says Berkshire is no longer just “interested” — it is entrenched. Practically, Buffett had previously said Berkshire agreed to stay below 10% in each company, then disclosed that the five trading houses agreed to relax that ceiling “moderately” as Berkshire approached it. So crossing 10% is the visible proof that those companies were comfortable giving Berkshire more room. (berkshirehathaway.com) ### Why does Berkshire like these businesses? Basically, they look a lot like the kind of thing Berkshire has always loved — diversified cash generators, understandable operations, shareholder returns, and managers who do not treat the company like a personal ATM. Buffett has praised the five for buybacks, disciplined compensation, and capital allocation. That lines up neatly with Berkshire’s own culture. The appeal is also geographic — Japan gives Berkshire a large developed-market exposure outside the U.S. without forcing it into speculative tech bets. (berkshirehathaway.com) ### Why now? Part of the answer is simple — Berkshire said in its shareholder letter that ownership in all five would likely rise over time. The latest move looks like execution, not a surprise pivot. But the timing also lands in a transition moment. Greg Abel is taking over as Berkshire’s CEO, and one of the questions hanging over the company has been whether the Buffett-era Japan thesis would continue. This move is a pretty clear yes. (berkshirehathaway.com) ### Is this just Buffett loyalty trade stuff? Not really. The catch is that these companies have also become a broader market story inside Japan. Trading-house shares have rallied repeatedly on Berkshire disclosures, and Buffett said in 2025 that Berkshire expected to hold the investments for 50 years or more. That long holding period matters. It tells investors Berkshire is not playing for a quick rerating. It is treating these companies more like permanent equity partners. (bloomberg.com) ### What changes for Berkshire? The biggest change is portfolio shape. Berkshire has been trimming huge U.S. equity positions and sitting on a massive cash pile, while its Japan exposure has kept getting deeper. That does not mean the trading houses will dominate Berkshire’s results. But it does mean one of the firm’s clearest international themes is no longer tentative. It is scaling. (cnbc.com) ### So what’s the real takeaway? This is less about a fresh gamble than about commitment. Berkshire found five Japanese conglomerates that fit its playbook, got permission to own more, and kept buying. Crossing 10% in Sumitomo and Marubeni tells you the Japan trade has moved from clever Buffett side project to core Berkshire position. (asia.nikkei.com)