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Berkshire Taps Yen Bonds: Does This Signal Confidence in Japan?
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Key Takeaways
BRK.B issued 272.3B of yen bonds in six tranches, with maturities from 3 to 30 years.
Borrowing in yen at ~1.2% average cost helps BRK.B hedge currency risk vs. its yen investments.
BRK.B's Japan trading-house stakes cost $15.4B and were valued at $35.4B by end-2025.
Berkshire Hathaway (BRK.B - Free Report) has sold ¥272.3 billion or $1.7 billion worth of yen-denominated bonds per a media report, reflecting a well-structured financing strategy. The 10-year notes offering comprised six tranches, with maturities ranging from three to 30 years, as per the report.
By tapping the Japanese debt market, the company is effectively managing currency risk while taking advantage of the country’s low borrowing costs. This approach enables Berkshire to secure funding at more attractive rates than in the United States and deploy the capital into higher-yielding investment opportunities.
The move likely signals confidence in Japanese assets, building on Berkshire’s existing investments in major Japanese trading houses. Berkshire has been steadily increasing its stakes in Japan’s five companies — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — since initiating investment in July 2019. By the end of 2025, Berkshire’s aggregate investment cost was $15.4 billion, while the market value of its stakes had grown to $35.4 billion.
Per the 2025 annual report of Berkshire Hathaway, the company has borrowed an amount roughly equivalent to the yen invested (cost basis) in Japan, at an average cost of 1.2%, with a weighted-average life of approximately 5.75 years.
Borrowing in yen creates a natural hedge when invested in yen assets, reducing currency risk by aligning assets and liabilities—consistent with Berkshire’s conservative approach. It also signals potential for greater exposure to Japan, where valuations remain attractive and governance is improving. The move further reflects Berkshire’s strong credit quality, allowing access to global funding at favorable rates.
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. It positioned MetLife as a leading force in Japan’s life insurance sector and reinforced 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 lost 4.9% year to date, underperforming the industry.
Image Source: Zacks Investment Research
BRK.B’s Expensive Valuation
BRK.B trades at a price-to-book value ratio of 1.42, above the industry average of 1.40. It carries a Value Score of D.
Image Source: Zacks Investment Research
Estimate Movement for BRK.B
The Zacks Consensus Estimate for BRK.B’s first-quarter 2026 EPS has witnessed no movement over the last 30 days, while that for the second quarter moved 6.1% south in the same time frame. The consensus estimate for full-year 2026 has moved 2 cents north, while that for 2027 has moved 4 cents south over the last 30 days.
Image Source: Zacks Investment Research
The consensus estimates for BRK.B’s 2026 and 2027 revenues indicate year-over-year increases. While the consensus estimate for BRK.B’s 2025 EPS indicates a decline, the same for 2026 suggests an increase.
BRK.B stock currently carries a Zacks Rank #5 (Strong Sell).
View the Zacks #1 Rank List
Image: Bigstock
Berkshire Taps Yen Bonds: Does This Signal Confidence in Japan?
Key Takeaways
Berkshire Hathaway (BRK.B - Free Report) has sold ¥272.3 billion or $1.7 billion worth of yen-denominated bonds per a media report, reflecting a well-structured financing strategy. The 10-year notes offering comprised six tranches, with maturities ranging from three to 30 years, as per the report.
By tapping the Japanese debt market, the company is effectively managing currency risk while taking advantage of the country’s low borrowing costs. This approach enables Berkshire to secure funding at more attractive rates than in the United States and deploy the capital into higher-yielding investment opportunities.
The move likely signals confidence in Japanese assets, building on Berkshire’s existing investments in major Japanese trading houses. Berkshire has been steadily increasing its stakes in Japan’s five companies — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — since initiating investment in July 2019. By the end of 2025, Berkshire’s aggregate investment cost was $15.4 billion, while the market value of its stakes had grown to $35.4 billion.
Per the 2025 annual report of Berkshire Hathaway, the company has borrowed an amount roughly equivalent to the yen invested (cost basis) in Japan, at an average cost of 1.2%, with a weighted-average life of approximately 5.75 years.
Borrowing in yen creates a natural hedge when invested in yen assets, reducing currency risk by aligning assets and liabilities—consistent with Berkshire’s conservative approach. It also signals potential for greater exposure to Japan, where valuations remain attractive and governance is improving. The move further reflects Berkshire’s strong credit quality, allowing access to global funding at favorable rates.
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. It positioned MetLife as a leading force in Japan’s life insurance sector and reinforced 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 lost 4.9% year to date, underperforming the industry.
Image Source: Zacks Investment Research
BRK.B’s Expensive Valuation
BRK.B trades at a price-to-book value ratio of 1.42, above the industry average of 1.40. It carries a Value Score of D.
Image Source: Zacks Investment Research
Estimate Movement for BRK.B
The Zacks Consensus Estimate for BRK.B’s first-quarter 2026 EPS has witnessed no movement over the last 30 days, while that for the second quarter moved 6.1% south in the same time frame. The consensus estimate for full-year 2026 has moved 2 cents north, while that for 2027 has moved 4 cents south over the last 30 days.
Image Source: Zacks Investment Research
The consensus estimates for BRK.B’s 2026 and 2027 revenues indicate year-over-year increases. While the consensus estimate for BRK.B’s 2025 EPS indicates a decline, the same for 2026 suggests an increase.
BRK.B stock currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.