Buffett Raises Mitsui Stake to Over 10%, Boosting Japan’s Top Trading Houses

TradingKey - On September 22, Mitsui & Co., one of Japan’s Trading Houses, announced that Warren Buffett’s Berkshire Hathaway now holds over 10% of the company’s shares, making it a major shareholder and possibly looking to further increase its stake.

Following this announcement, Mitsui & Co.'s stock surged by as much as 2.2% in the afternoon session to 3,805 yen, the highest since July 2024, closing up 1.34% at 3,774 yen. The share prices of other top trading houses, including Mitsubishi Corp., Itochu Corp., Marubeni Corp., and Sumitomo Corp., also rose in tandem.

Buffett first revealed his investment in Japan’s Trading Houses in 2020. These firms are diversified across sectors such as liquefied natural gas (LNG), food processing, and resource development. Supported by Buffett’s backing and their strong risk management capabilities, their stock performance has consistently outpaced Japan’s TOPIX index.

Previously, Berkshire planned to keep its holdings in Japanese trading houses below 10%. However, after these companies agreed to slightly relax the cap, Berkshire increased its stake in Mitsubishi Corp. to over 10% by late August.

Analysts believe Buffett’s increased investment in these trading houses may be linked to expectations that the U.S. Federal Reserve’s interest rate cuts and rising inflation in Japan could brighten the economic outlook.

SBI Securities analyst Ryunosuke Shibata commented that the additional stake in Mitsui & Co. was not unexpected, but Buffett’s continued accumulation provides strong upward momentum for Japan’s trading house sector.

MCP Asset Management Japan strategist Rieko Otsuka views Buffett’s holdings as a long-term investment in trading house stocks, with the rising stake offering downside protection for the share prices.

However, she added that investors face uncertainties related to current resource prices, currency fluctuations, and tariff policies. With stocks already at high levels, there isn’t a compelling reason to further increase holdings in trading house stocks.