Berkshire's Post-Buffett Japan Becomes a Platform

For the Berkshire Hathaway shareholder, Greg Abel's trip to Tokyo addressed a very concrete succession question: were the Japanese investments Warren Buffett's last big bet, or a strategy his successor would continue? The answer is now clear. Berkshire intends to hold them for "several decades" and is seeking deals with its partners.

The Essentials

Berkshire owns more than 10% of Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo, for a total estimated value of around $42 billion, according to information released during the interview. In March 2026, it added a 2.49% stake in Tokio Marine, valued at approximately $2 billion, along with a strategic partnership. Greg Abel confirms continuity and opens the door to joint ventures.

Why the issue goes beyond six holdings

The sogo shosha are not simply foreign stocks in Berkshire's portfolio. They are operating investment companies in their own right: they allocate capital to energy, industry, food, infrastructure, and services. Berkshire Hathaway thus acquires five business networks, yen diversification, and partners capable of sourcing or co-financing transactions.

A method conceived as a holding portfolio

Berkshire started with around 5% before gradually increasing its positions. This patience allowed it to get to know the managers and their allocation practices. The choice of five groups reduces the risk of a single team or sector dominating the Japanese thesis.

Trading houses possess assets that have been difficult to replicate since Omaha: industrial relationships, access to raw materials, knowledge of Asian markets, and the ability to operate assets. Berkshire, on the other hand, brings permanent capital, a reputation as a stable partner, and significant insurance capacity.

Yen-denominated debt is not insignificant.

As of June 30, Berkshire had $15.228 billion of yen-denominated debt, with a weighted average yield of 1.4% and maturities extending to 2060. The match is not perfect: assets and debt have neither the same duration nor the same behavior. However, this structure reduces some of the foreign exchange exposure and brings the financing currency closer to that of the equity investments and dividends.

Greg Abel indicated that the rise in Japanese interest rates remained manageable. This is important: the strategy is no longer based solely on the anomaly of near-zero interest rates. It must hold even if refinancing costs increase and the yen strengthens.

How an equity stake becomes a platform

Tokio Marine expands the strategy

The 2.49% investment in Tokio Marine isn't a sixth trading house. It brings it closer to Berkshire's historical business: property and casualty insurance. Abel says he wants to do business with the group, while declining to comment on the targets mentioned in the press.

The partnership could take several forms: co-insurance, reinsurance, joint acquisition, or capital contribution. None of this has been announced yet. However, its very existence shows that Berkshire is looking for more than just a basket of cheap stocks in Japan.

Opulion Read

Abel's journey transforms a portfolio question into a model question. Berkshire appears to be replicating its preferred method in Japan: choosing autonomous allocators, providing capital without micromanaging, and letting time create unexpected opportunities.

The decisive proof will come when one of these relationships produces a measurable transaction. In the meantime, the duration declaration already has value: it reduces the risk that the succession will lead to a rapid liquidation of the positions built up by Buffett.

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