Berkshire Considers Raising Stake in Japan's Five Major Trading Houses, Ownership Cap May Rise to 15%
nashnova research
Berkshire Hathaway is considering lifting its stakes in Japan's five major trading houses from over 10% to as high as 15%, with CEO Greg Abel signaling a long-term commitment — a clear sign that the Buffett team is doubling down on the trading houses' economic moats.
Where did this come from, and what was said?
Masahiro Okafuji, head of the Japan Foreign Trade Council and chairman of Itochu, disclosed the information at a Wednesday press conference after meeting Berkshire CEO Greg Abel earlier this month.
Okafuji paraphrased Abel: Berkshire "intends to hold trading-house shares long term and is even considering increasing its stakes."
Abel separately confirmed to the Nikkei that Berkshire may raise its shareholding — two sources pointing in the same direction.
How high could the stakes go?
Berkshire currently holds more than 10% in each of the five houses: Mitsubishi, Sumitomo, Mitsui, Marubeni, and Itochu.
Okafuji revealed that Abel indicated Berkshire would have no objection even if stakes rose to 15%.
This means → the jump from 10% to 15% is more than arithmetic — 15% approaches a significant-shareholder influence threshold under Japanese corporate governance, yet Berkshire has explicitly said it will not interfere in day-to-day operations.
What does Berkshire see in these companies?
Okafuji relayed that Berkshire values the trading houses' "economic moats" — in plain terms = these firms have global trade networks and capital-allocation skills built over decades, creating barriers that new entrants cannot easily replicate.
These moats are a core reason behind Berkshire's investment.
This reflects Berkshire's longstanding stock-picking logic: find businesses with durable competitive advantages, hold for the long run, and stay out of daily management.
What is the investment history, and where are the risks?
Berkshire first entered Japanese trading houses more than six years ago, has added to its positions in stages, and regularly issues yen-denominated bonds to fund the investments — in plain terms = borrow in yen to buy yen assets, naturally hedging currency risk.
Okafuji called Berkshire "extremely valuable as a shareholder."
He also noted that the market often discusses potential collaboration between Berkshire and the trading houses — but if a major shareholder simultaneously engages in commercial deals, potential conflicts of interest remain a point to watch.
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