Warren Buffett’s $31 Billion Japanese Bet: Berkshire Hathaway Doubles Down on Strategic Holdings
Berkshire Hathaway keeps loading up on Japanese assets as Warren Buffett's empire crosses the $31 billion threshold in the Land of the Rising Sun.
The Oracle's Eastern Gambit
Buffett's methodical accumulation of Japanese trading houses continues defying conventional investment wisdom. While traditional finance types obsess over quarterly earnings, the billionaire investor builds positions with the patience of a samurai warrior.
The $31 billion milestone represents one of Berkshire's most significant international bets—proving sometimes the smartest money goes where others fear to tread. Japanese regulators watch closely as the American investment legend deepens his commitment to the world's third-largest economy.
While Wall Street chases crypto trends and AI hype, Buffett quietly assembles an Eastern empire built on old-school value—because apparently, finding undervalued assets still beats chasing digital ghosts in the machine.
Berkshire boosts its stakes in Mitsui and Mitsubishi
This week, Mitsui & Co. confirmed in a statement that Berkshire’s insurance arm, National Indemnity, owned 292,044,900 shares as of September 30, equal to about 10.1% of the company. At Friday’s close, those shares were worth nearly $7.1 billion, making Berkshire Mitsui’s largest shareholder.
The number is up from 285,401,400 shares, or a 9.7% stake, reported back in March. Mitsui said Berkshire had earlier informed it that voting rights had exceeded 10%, but this filing was the first to reveal the exact amount.
Two weeks earlier, Mitsubishi also confirmed that Berkshire’s holding had climbed to 10.2%, up from 9.7% in March. The three other companies (Itochu, Marubeni, and Sumitomo) haven’t issued updates since spring, but market analysts expect those stakes could also have quietly increased.
Warren had initially agreed not to raise Berkshire’s ownership above 10% without approval from each firm. But in his February 2024 annual letter to shareholders, he wrote, “As we approached this limit, the five companies agreed to moderately relax the ceiling.” He added, “Over time, you will likely see Berkshire’s ownership of all five increase somewhat.” That opened the door for him to expand beyond the original cap.
Occidental struggles while Berkshire’s Japan bet soars
Warren said in 2023 that he bought into these Japanese firms in 2020 because “they were selling at what I thought was a ridiculous price, particularly the price compared to the interest rates prevailing at that time.” He later told shareholders Berkshire plans to keep them for “50 years or forever.”
But while Berkshire’s Japan holdings have performed, its Occidental Petroleum investment hasn’t.Warren began buying Occidental shares in 2022, building a 26% stake now worth around $12 billion.
The company’s CEO, Vicki Hollub, 65, has led the firm since April 2016, but the stock has fallen from $76 to $45, producing a negative 20% total return, including dividends.
Over the same period, the Energy Select Sector SPDR, led by Exxon Mobil and Chevron, has gained over 90%, while competitors like Diamondback Energy and EOG Resources have doubled.
At Berkshire’s 2023 annual meeting, Warren called Hollub an “extraordinary manager.” Still, Barron’s estimates Berkshire’s average cost per Occidental share in the low $50s, leaving him in the red.
He’s long preached about keeping strong balance sheets at both Berkshire and its investments (like Apple, Coca-Cola, and American Express) but with Occidental, he broke that rule. And now, he’s paying the price. So are Occidental’s other shareholders.
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