From Financial Modeling Prep: 2025-02-25 02:00:43

Shares of Japan’s five major trading houses surged over 5% after Warren Buffett announced plans to increase Berkshire Hathaway’s ownership stakes. Mitsubishi Corp led with a 7.5% gain, followed by Mitsui & Co, Sumitomo Corp, Itochu, and Marubeni each rising over 5%.

Buffett revealed in his shareholder letter that Berkshire’s investments in the trading houses totaled $23.5 billion, with current holdings costing $13.8 billion and expected dividend income of $812 million in 2025. He indicated that Berkshire’s ownership will “increase somewhat” over time.

Despite the trading houses’ gains, Tokyo’s Nikkei 225 index was down 1.57% as Japanese markets reopened after a holiday. These conglomerates, known as “Sogo Shosha,” operate diversely across industries, making them resilient to economic fluctuations and attractive long-term plays for Buffett.

Berkshire’s strategy in Japan focuses on stable cash flow, diversification beyond the U.S. market, and undervalued stocks with strong ROE and earnings growth. With Buffett’s continued interest, Japan’s trading houses could maintain momentum, appealing to global investors seeking stable, dividend-paying opportunities.



Read more at Financial Modeling Prep:: Japan’s Trading Houses Surge Over 5% as Buffett Si…