Berkshire Hathaway Raises Japan Bet With Higher Trading House Stakes

Berkshire Hathaway BRK.B has increased its stakes in Japan’s Sumitomo Corp. and Marubeni Corp. to more than 10%, with holdings now at 10.05% and 10.1%, respectively. The move reflects Berkshire’s ongoing expansion in Japan, where it now owns over 10% stakes in all five major trading houses — Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo.These diversified companies operate across sectors like energy, commodities, logistics and technology. Their disciplined capital allocation, strong management practices, and shareholder-friendly policies such as dividends and buybacks align closely with Berkshire’s long-term investment philosophy. By the end of 2025, Berkshire’s total investment cost in these firms was about $15.4 billion, while the market value of the holdings had climbed to roughly $35.4 billion.Several factors continue to support Berkshire’s growing presence in Japan. Corporate governance reforms have improved transparency and capital efficiency, making Japanese firms increasingly attractive to foreign investors. At the same time, Japanese equities remain relatively inexpensive compared with U.S. peers, offering appealing long-term return potential. Berkshire is also planning to invest nearly $1.8 billion in Tokio Marine Holdings.The conglomerate has financed its expansion strategically through yen-denominated bonds, reducing currency risk while benefiting from Japan’s low borrowing costs. Favorable yen-dollar exchange movements have further contributed billions in after-tax gains. Beyond financial returns, these investments provide Berkshire exposure to businesses central to Japan’s industrial and resource infrastructure, enhancing diversification and long-term earnings stability and providing more exposure to the growing economy of Asia. What About Other Insurers?MetLife MET, a major U.S. insurer, has built a strong, long-term presence in Japan. MetLife’s most transformative move was acquiring Alico in 2010. It positioned MET as a leading force in Japan’s life insurance sector and reinforced its strategic growth ambitions in Asia.Aflac Incorporated AFL established Aflac Ventures Japan in 2019 to invest in cancer care, HealthTech, and InsurTech startups, fostering innovation for Aflac Life Insurance Japan. In 2018, Aflac converted its Japanese branch into a subsidiary. Today, Japan remains a vital revenue driver, underscoring Aflac’s strategic commitment.BRK.B’s Price PerformanceShares of BRK.B have gained 3.8% year to date, underperforming the industry.Image Source: Zacks Investment ResearchBRK.B’s Expensive ValuationBRK.B trades at a price-to-book value ratio of 1.43, above the industry average of 1.33. Image Source: Zacks Investment ResearchNo Estimate Movement for BRK.BThe Zacks Consensus Estimate for BRK.B’s second-quarter and third-quarter 2026 EPS has witnessed no movement over the past 30 days. The same holds true for 2026 and 2027 EPS. Image Source: Zacks Investment ResearchThe consensus estimates for BRK.B’s 2026 and 2027 revenues indicate year-over-year increases. While the consensus estimate for BRK.B’s 2026 EPS indicates a decline, the same for 2027 suggests an increase.  BRK.B stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks