Berkshire Hathaway Signals Intent to Increase Stakes in Japan's Major Trading Houses

Berkshire Hathaway is considering an increase in its already substantial stakes in Japan's five largest trading houses, according to a statement from CEO Greg Abel. The potential move signals a deepening commitment to the Japanese market by the U.S. conglomerate, which has benefited significantly from its prior investments in the sector.

Berkshire's Endorsement and Financial Stake

Berkshire Hathaway's interest is a significant vote of confidence in the business models of Itochu Corp., Marubeni Corp., Mitsui & Co., Sumitomo Corp., and Mitsubishi Corp. During 2025, Berkshire held stakes ranging from 9% to 11% across the five firms, according to a September 2, 2026 report from Investing.com.

These holdings have been financially rewarding for the company. Berkshire Hathaway earned $862 million in dividends from the group in 2025 alone, underscoring the strong cash-flow generation of these diversified commodity and industrial giants. Abel's comments suggest Berkshire's long-term investment horizon remains constructive on their prospects.

Valuations Under Scrutiny

Despite the powerful endorsement from Berkshire, an analysis by Investing.com suggests that current market prices for all five trading houses are above their estimated fair values. This indicates that much of the positive outlook may already be priced into the stocks, potentially limiting the margin of safety for new investors.

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The estimated valuation downsides as of September 3, 2026, were:

• Sumitomo Corp. (8053): -17.2%
• Marubeni Corp. (8002): -13.7%
• Mitsui & Co. (8031): -12.2%
• Mitsubishi Corp. (8058): -8.5%
• Itochu Corp. (8001): -3.9%

A Look at the Fundamentals

The five companies, while often grouped together, exhibit distinct fundamental characteristics. Itochu Corp. stands out with the strongest Return on Equity (ROE) at 14.5% and the smallest gap between its market price and estimated fair value. In contrast, Marubeni Corp. offers the highest recent revenue growth at 10.2% but comes with a higher valuation risk.

Sumitomo Corp. appears cheapest based on its P/E ratio, but this is offset by slower growth and the highest leverage, with a debt-to-equity ratio of 104.4%. While Berkshire Hathaway's potential buying is a meaningful signal, the underlying financial metrics and valuations across the five trading houses vary significantly, warranting careful consideration from market participants.