Berkshire Raises Its Stake in Mitsubishi to 10.23%

Post by : Monika

Photo: Reuters

Berkshire Hathaway, the company led by famous investor Warren Buffett, has increased its ownership in Japan’s Mitsubishi Corporation. The stake has gone up from 9.74% to 10.23%. This means Berkshire now owns more than one-tenth of Mitsubishi. The announcement was confirmed by Mitsubishi itself.

At the same time, Berkshire is also raising its investment in another Japanese trading company, Mitsui & Co. However, the exact new percentage for Mitsui has not been made public.

Why Is This Important?
Confidence in Japanese Companies

This step shows that Berkshire Hathaway believes strongly in Japan’s big trading companies. In March earlier this year, Berkshire had already increased its investments in five major Japanese trading houses, including Mitsubishi and Mitsui.

Now, crossing the 10% mark means Berkshire has even more faith in these companies. For Warren Buffett, this is not just a small move—it’s a clear sign that he sees these businesses as very reliable for the long run.

A Long-Term Plan

Warren Buffett is known for holding his investments for many years. Recently, he even said that Berkshire could hold its shares in these Japanese companies for “50 years or longer.” This shows he sees them as safe, solid businesses that can survive and grow for decades.

Market Reaction in Japan

The stock market in Japan reacted quickly after the news. Shares of Mitsubishi rose by about 1.85%, while shares of Mitsui went up by 1.23%. Other trading companies, such as Sumitomo, Itochu, and Marubeni, also saw small increases in their share prices. Investors seemed to take this as a good sign, showing trust in the same companies Berkshire trusts.

Background of This Strategy
First Steps in 2019

Berkshire Hathaway started investing in Japanese trading companies back in 2019. At first, it bought about 5% of each company. These companies, often called “sogo shosha” in Japan, play a very important role in the country’s economy. They handle things like exports, imports, energy, and natural resources.

Steady Growth of Holdings

Over the years, Berkshire has slowly increased its ownership. By early 2025, it already owned between 8.5% and 9.8% of each of the five companies. The decision to go past 10% is another step forward, showing even deeper confidence.

Rule Changes Helped

Recently, Japanese rules on foreign investment were relaxed. Earlier, it was not easy for outside companies to hold more than 10% of shares. But with these changes, Berkshire could safely raise its ownership without facing restrictions.

Why Buffett Likes These Companies

• Warren Buffett often talks about what he values in a business. For him, it is not just about short-term profits. He looks for companies that:
• Use profits wisely – reinvesting money in smart ways.
• Make strong decisions – companies with good leadership and management.
• Pay executives fairly – leaders are disciplined and not overpaid.

He believes Japanese trading houses like Mitsubishi and Mitsui have all these qualities. That is why he wants Berkshire to stay invested in them for many years.

An Easy Example for Students

Think about it like saving money in a piggy bank. Instead of spending your savings right away, you choose to trust someone reliable to keep and grow your money. You don’t pick just anyone—you pick people who are smart, careful, and experienced. You know they won’t waste your savings, and they will help it grow over time.

That’s exactly what Warren Buffett is doing here. He is trusting Japanese companies that have a long history, strong management, and the ability to keep growing.

This lesson is important for students: investing is not only about making quick money. It’s about patience, trust, and choosing wisely.

Key Point Explanation

• Stake Raised Berkshire increased its Mitsubishi ownership from 9.74% to 10.23%
• Mitsui Investment Also raising stake in Mitsui, but percentage not shared
• Earlier Investments Started with 5% in each of five companies in 2019
• Long-Term Plan Buffett plans to hold shares for 50 years or longer
• Market Reaction    Mitsubishi shares rose 1.85%, Mitsui rose 1.23%
• Why It Matters Shows strong trust in Japan’s trading houses
• What This Means Going Forward

For Japan:

• It boosts global trust in Japanese companies.
• It helps attract more international investors.
• It strengthens the reputation of trading houses worldwide.

For Berkshire Hathaway:

• It secures a long-term investment in reliable companies.
• It balances risks by investing outside the United States.
• It shows that Buffett continues his strategy of steady, patient investing.
• For students and young readers:
• It’s a lesson in saving and planning for the future.
• Quick profits may look exciting, but patient investing often works better.
• Trust and discipline are key parts of making good financial choices.

Berkshire Hathaway’s decision to raise its stake in Mitsubishi above 10% is more than just a financial move. It shows strong trust in Japan’s economy, faith in trading companies, and the classic Warren Buffett approach of long-term investing.

With shares of Mitsubishi, Mitsui, and other trading houses climbing after the news, investors around the world are taking note. For Buffett, this is another example of his belief in simple, steady, and patient investments that can last for decades.

Berkshire Hathaway