Berkshire Hathaway May Raise Japanese Trading House Stakes to 15%

Berkshire Hathaway is considering increasing its ownership stakes in five major Japanese trading houses: Mitsubishi, Sumitomo, Mitsui, Marubeni, and Itochu. The U.S. investment firm currently holds stakes exceeding 10% in each company and has indicated it would be comfortable raising those holdings to 15%.

Masahiro Okafuji, Chairperson of the Japan Foreign Trade Council and Itochu, disclosed these intentions following a meeting with Berkshire CEO Greg Abel earlier this month. Okafuji stated that Berkshire intends to hold these positions for the long term, valuing the economic moat provided by the firms' global networks and capital allocation capabilities.

While Berkshire continues to issue yen-denominated bonds, Okafuji noted that the firm's role as a shareholder could create potential conflicts of interest if the trading houses pursue larger business collaborations with the investment company.