Berkshire Hathaway CEO Greg Abel said rising Japanese bond yields do not currently pose a major challenge to the company’s investments in Japan’s leading trading houses. Berkshire now owns more than 10% of each of the five companies after initially agreeing not to exceed that level.
Berkshire Hathaway CEO Greg Abel said higher Japanese bond yields are not a significant concern for the company’s investments in the country’s major trading houses, reaffirming Berkshire’s long-term commitment to its Japanese holdings.
Japan’s 10-year government bond yield recently approached 3%, its highest level in about three decades, as a broader sell-off pushed government borrowing costs higher across major markets.
Speaking from Tokyo, Abel said Berkshire continues to view its Japanese investments as long-term holdings. The conglomerate has built major positions in Mitsubishi Corp., Mitsui & Co., Itochu Corp., Marubeni Corp. and Sumitomo Corp.
Berkshire initially agreed to keep its ownership of each trading house below 10% when it began accumulating the stakes in 2020. It has since received approval to increase its holdings, with the company now holding more than 10% of all five firms.
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The increase reflects Berkshire’s continued confidence in the businesses despite changes in Japan’s interest-rate environment. Abel has emphasized that Berkshire intends to hold the Japanese investments for decades rather than trade them based on short-term market movements.
Berkshire has also expanded its presence in Japan beyond the trading houses. In March, the company agreed to acquire a 2.49% stake in Tokio Marine Holdings for about $1.8 billion and established a strategic partnership with the Japanese insurer.
Abel’s comments come as investors assess the implications of Japan’s sharply higher borrowing costs for domestic companies and global financial markets. For Berkshire, however, the Japanese trading houses remain an important part of its international investment strategy.
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