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Berkshire Boosts Mitsui Stake, Increases Investment in Japan

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Key Takeaways

  • Berkshire raised its Mitsui stake to more than 10%, marking further expansion in Japan.
  • Its total Japan stake cost $13.8B and was valued at $23.5B at 2024 end, showing strong growth.
  • Berkshire expects $812M in 2025 dividends versus $135M in interest costs from yen-denominated bonds.

Berkshire Hathaway (BRK.B - Free Report) increased its stake in the Japanese company Mitsui Corp. to more than 10%. This recent move marks Berkshire's continued expansion in Japan. Mitsui stated that Berkshire has currently become a major shareholder after National Indemnity Company, a wholly owned subsidiary of Berkshire, acquired its shares. 

Berkshire has been steadily increasing its stake in Japanese firms since initiating investment in July 2019. Last month, Berkshire increased its stake in Mitsubishi Corp. to 10.23% from 9.74% held earlier. Apart from Mitsui and Mitsubishi, Berkshire has stakes in three other Japanese firms — Itochu, Marubeni and Sumitomo. 

Per an annual filing in February, Buffett stated that, “these five Japanese companies operate in a manner somewhat similar to Berkshire itself.” He also stated that, “from the start, we also agreed to keep Berkshire’s holdings below 10% of each company’s shares. But, as we approached this limit, the five companies agreed to moderately relax the ceiling. Over time, you will likely see Berkshire’s ownership of all five increase somewhat.” By the end of 2024, Berkshire’s aggregate investment cost was $13.8 billion, while the market value of its stakes had grown to $23.5 billion.

Notably, corporate governance reforms have enhanced transparency and capital efficiency, making Japanese companies more attractive to foreign investors. Meanwhile, Japanese companies trade at relatively modest valuations compared to U.S. companies, making them attractive picks.

Also, by issuing yen-denominated bonds, Berkshire has limited currency exposure while capitalizing on Japan’s low-cost debt environment. In 2025, Berkshire expects about $812 million in annual dividends, while incurring only $135 million in interest expenses. Favorable yen-dollar movements provided a further boost, delivering billions in after-tax gains.

Increasing investment in Japanese firms thus creates opportunities for more exposure in the growing economy of Asia.

What About Other Insurers?

MetLife (MET - Free Report) , a major U.S. insurer, has built a strong, long-term presence in Japan. MetLife’s most transformative move was acquiring Alico in 2010, positioning MetLife as a leading force in Japan’s life insurance sector and reinforcing its strategic growth ambitions in Asia.

Aflac Incorporated (AFL - Free Report) established Aflac Ventures Japan in 2019 to invest in cancer care, HealthTech and InsurTech startups, fostering innovation for Aflac Life Insurance Japan. In 2018, Aflac converted its Japanese branch into a subsidiary. Today, Japan remains a vital revenue driver, underscoring Aflac’s strategic commitment.

BRK.B’s Price Performance

Shares of BRK.B have gained 7.6% year to date, outperforming the industry.

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BRK.B’s Expensive Valuation

BRK.B trades at a price-to-book value ratio of 1.59, above the industry average of 1.54. It carries a Value Score of D.

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No Estimate Movement for BRK.B

The Zacks Consensus Estimate for BRK.B’s third-quarter 2025 EPS has witnessed no movement over the past 30 days, while that for the fourth quarter moved 14.1% up in the same period. The consensus estimate for full-year 2025 EPS has moved 1.6% down, while the same for 2026 has declined 3.8% over the past 30 days.
 

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The consensus estimates for BRK.B’s 2025 and 2026 revenues indicate year-over-year increases. While the consensus estimate for BRK.B’s 2025 EPS indicates a year-over-year decline, the same for 2026 suggests an increase.  

BRK.B stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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