<\/p>\n
Warren Buffett has always said his favorite holding period is forever. His deepening commitment to Japan’s trading houses is starting to look like exactly that.<\/p>\n
Berkshire Hathaway (BRK.B) (BRK.A) quietly crossed the 10% ownership threshold in two more Japanese conglomerates \u2014 Sumitomo Corp. and Marubeni Corp. \u2014 the week ending May 9, bringing all five of its Japanese trading house stakes above that symbolic level. It is a deliberate escalation of what began as a surprising 2020 bet on an overlooked corner of global markets.<\/p>\n
The timing is notable. Greg Abel just hosted his first annual shareholder meeting as Berkshire’s new CEO. Buffett himself is stepping back. And yet the Japan strategy, widely seen as one of Buffett’s most elegant late-career moves, is being elevated rather than wound down.<\/p>\n
Abel was explicit about the direction at the annual meeting. These are permanent, long-term holdings intended to generate strong dividend income for decades, he said in a report by Seeking Alpha. That is the new CEO sending a clear signal to markets about strategic continuity.<\/p>\n
Berkshire just crossed 10% in Sumitomo and Marubeni, lifting ceiling<\/p>\n
The specific moves, according to regulatory filings: Berkshire raised its stake in Sumitomo Corp. (SSUMY) to 10.05% as of May 7, up from 9.30% in March, according to the Sumitomo Corp. report. Its Marubeni Corp. (MARUY) holding rose to 10.10% as of May 6, up from 9.32% in March, Marubeni Corp indicated.<\/p>\n
Here is the detail that makes these moves more significant than routine stake increases. Berkshire originally agreed to keep its holdings in each trading house below 10%. That ceiling has since been lifted by the companies themselves. What I see is a meaningful signal of trust and mutual commitment between Berkshire and its Japanese partners.<\/p>\n
More Warren Buffett:<\/p>\n
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Mitsubishi Corp., Itochu Corp., and Mitsui & Co. had already crossed 10% earlier. All five are now above that threshold. Berkshire also recently unveiled a $1.8 billion investment in Japanese insurer Tokio Marine Holdings, according to Reuters, extending its Japanese footprint beyond the trading house universe.<\/p>\n
My review of the ownership trajectory suggests this is not incremental portfolio management. This is a concentrated, conviction-driven expansion of a strategic position.<\/p>\n
Why these Japanese conglomerates appeal to Berkshire: the dividend math<\/p>\n
The sogo shosha, Japan’s diversified trading goliaths, operate across energy, logistics, finance, and commodities in ways that mirror Berkshire’s own conglomerate structure. Buffett has described the returns as “even better than expected” since the original 2020 investment, Wisdom Tree noted.<\/p>\n
The dividend yields tell part of the story. My review of current yield data shows the five trading houses averaging roughly 2.1% to 3.4%, according to data from Digrin,\u00a0 more than triple the yield of Berkshire’s core U.S. technology holdings.<\/p>\n
Related: Berkshire faces its toughest test in 60 years<\/p>\n
For comparison, as of early May 2026, Apple’s (AAPL) dividend yield is approximately 0.35% to 0.40%, according to Macrotrends. American Express yields roughly 1.21%. Berkshire itself pays no dividend at all.<\/p>\n
But the yield-on-cost calculation is where the investment really shines. Because Berkshire bought these stakes starting in 2020 at much lower prices, the effective dividend yield relative to original cost is estimated above 5% for several of these companies.\u00a0<\/p>\n
Berkshire said in its shareholder letter last year that it expected to collect $812 million in dividend income from its Japanese investment in 2025 alone. That is cash income at scale, with no need to sell a single share.<\/p>\n
Berkshire said it expected to collect $812 million in dividend income from its Japanese investment in 2025 alone.<\/p>\n
Bloomberg via Getty Images<\/p>\n
How Sumitomo and Marubeni have performed as investments<\/p>\n
The capital appreciation case has been just as strong as the income case.<\/p>\n
Sumitomo (SSUMY) is up 32.86% year to date and 83.42% over the past year, outpacing the Nikkei 225’s 24.58% and 69.82% gains over the same periods, according to Yahoo Finance. The five-year return of 229% more than doubles the Nikkei’s 113%.<\/p>\n
Related: Greg Abel sends blunt message on Berkshire\u2019s $370 billion cash pile<\/p>\n
Marubeni (MARUY) tells a similar story, up 24.82% year to date and 85.29% over the past year, roughly in line with the Nikkei on a short-term basis but compounding at 309% over five years against the index’s 113%, Yahoo Finance confirmed.<\/p>\n
These are not speculative bets. They are businesses generating real cash, paying growing dividends, and compounding quietly while Western markets fixate on AI chips and software multiples.<\/p>\n
What Japan’s deepening means for Berkshire’s next chapter under Greg Abel<\/p>\n
Berkshire posted first-quarter 2026 earnings on May 2. Revenue grew 4% year over year, and earnings per B share jumped 120%, though both missed expectations, as gains were driven partly by investment revaluations. The company’s cash pile now stands at nearly $400 billion, according to Berkshire’s earnings materials.<\/p>\n
Abel told shareholders he will continue seeking targets for that cash, but only at the right valuations. He dismissed any talk of breaking up Berkshire.<\/p>\n
Buffett himself had characteristically pointed words for the broader market environment. “We’ve never had more people in a gambling mood than now,” he said in a CNBC interview on May 4, 2026. While investing is not a terrible idea, he added, “prices for an awful lot of things will look awfully silly.”<\/p>\n
Against that backdrop, Berkshire is deepening its stake in businesses that trade at reasonable valuations, pay generous dividends relative to original cost, and operate as globally diversified conglomerates. <\/p>\n
These moves look less like a contrarian bet and more like the most Buffett-like move imaginable. That’s true even if Buffett is no longer technically running the show.<\/p>\n
Related: Warren Buffett has message for investors on Berkshire’s new CEO<\/p>\n
#Warren #Buffett039s #Berkshire #Hathaway #major #global #move<\/p>\n","protected":false},"excerpt":{"rendered":"
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