Key Points

Regulatory filings in Japan revealed that Berkshire raised its ownership in Mitsubishi, Sumitomo, and Marubeni throughout the second quarter.
The five Japanese trading house investments originally cost $15.4 billion and reached a value of $35.4 billion by the close of 2025.
These holdings are supported by yen-denominated borrowings that carry an average interest rate of only 1.2 percent.

Since Greg Abel assumed the role of Berkshire Hathaway CEO at the beginning of the year, market observers have monitored how he would deploy the company's substantial cash reserves. Disclosures filed with Japanese authorities provided an initial indication last quarter.

Berkshire reported that its interest in trading company Mitsubishi rose to 11.1 percent by April 30. Its position in Sumitomo advanced to 10.3 percent by May 12 from 9.3 percent earlier. Marubeni also appears on the updated list.

Berkshire's additional purchases lifted its stakes in both Sumitomo and Marubeni past the 10 percent threshold, establishing the conglomerate as the top shareholder in each firm.

These three companies belong to the group of five Japanese trading houses, alongside Itochu and Mitsui, that Berkshire first acquired starting in 2019 under Warren Buffett, who continues as chairman. The initial investment rationale has already delivered strong results. The figures illustrate why Berkshire continues to add to the positions.

1. Mitsubishi

Mitsubishi represents Berkshire's largest holding among the Japanese group. These trading houses function as diversified conglomerates with interests spanning numerous sectors in Japan and globally.

At the end of 2025, Berkshire held 10.8 percent of Mitsubishi. That stake had an acquisition cost of $4.2 billion and a market value of $9.2 billion, per the annual report. The position generated $273 million in dividends during the year, the highest among the five holdings. The April filing indicates further purchases occurred.

2. Marubeni

Marubeni delivered the strongest performance within the portfolio. The position, acquired for roughly $1.6 billion, expanded to approximately $4.5 billion by year-end 2025, nearly tripling in value. It also contributed $105 million in dividends last year.

Berkshire owned 9.8 percent of Marubeni at the close of the year. Recent acquisitions pushed ownership above 10 percent.

Abel's latest capital allocations therefore supported the strongest performer in the group.

3. Sumitomo

Sumitomo completes the updated trio. Berkshire's stake cost $1.9 billion and stood at $4.0 billion at the end of 2025, while paying $102 million in dividends during the year. The May filing showed ownership at 10.3 percent, reflecting a full percentage point increase.

Strong Overall Results

Combined, the five trading house positions cost $15.4 billion and carried a market value of $35.4 billion at the end of 2025. The companies distributed a total of $862 million in dividends to Berkshire last year, producing a yield near 5.6 percent based on original cost.

The pattern continued from prior periods. One year earlier, the same five holdings had cost $13.8 billion and were valued at $23.5 billion. During 2025, Berkshire deployed about $1.6 billion in additional funds, while the market value of the stakes rose by nearly $12 billion.

Financing enhances the returns further. Berkshire has borrowed yen amounts matching its investments at an average interest rate of 1.2 percent. Dividends therefore exceed borrowing costs multiple times before any capital appreciation is considered.

The approach remains active. Berkshire issued another 272.3 billion yen in senior notes during April.

Additional capacity exists. Berkshire initially committed to keeping ownership below 10 percent per company, yet the firms later agreed to allow moderate increases, as noted in Buffett's February 2025 letter.

Buffett expressed in that letter his expectation that Abel and future leaders would maintain the Japanese investments for many decades. In his first annual letter as CEO, Abel placed these holdings on par with Berkshire's major U.S. positions, describing them as comparable in importance and long-term value creation potential.

For Berkshire shareholders, the recent purchases signal a steady continuation of proven strategies: acquiring profitable conglomerates at attractive prices, collecting rising dividends, and financing with low-cost fixed-rate debt.