Warren Buffett Is Increasing His Investments in Japanese Companies. Should You Also Invest?

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Buffett just made another big bet on Japan, raising his stakes in Japan’s five sogo shosha—major trading houses—to nearly 10% each. That brings the combined value of his positions in Mitsubishi Corp. ($8.89 billion), Itochu Corp. ($7.73 billion), Mitsui & Co. ($6.66 billion), Marubeni Corp. ($3.56 billion) and Sumitomo Corp. ($3.18 billion) at just over $30 billion, up more than a quarter from $23.5 billion at the end of 2024.

Given that Berkshire sold more than $134 billion worth of U.S. stocks in 2024, Buffett’s increased bet on Japan’s major trading houses raises the question: Should you be shifting your investments as well?

Why Buffett Is Betting Big on Japan’s Trading Houses

So why these companies? Buffett likes them for the same reason he’s liked many of his highly profitable investments:

1. He’s a value investor: As Buffett practices it, value investing means buying strong, well-managed companies at prices below their worth and holding them for the long term. “We simply looked at their financial records and were amazed at the low prices of their stocks,” Buffett told Berkshire’s investors earlier this year. “Our holdings of the five are for the very long term.” Buffett noted that at year-end 2024, he’d already profited about $10 billion on these Japanese investments—a figure that’s surely grown substantially in 2025.
2. These companies pay out steady cash: “They repurchase their shares when it is sensible to do so, and their top managers are far less aggressive in their compensation programs than their U.S. counterparts.” Morningstar has estimated that the annual yields (dividends plus stock buybacks) for the five companies range from Itochu’s average of 4.32% to Mitsubishi’s 7.84%.
3. He used very-low-interest bonds to invest. Buffett also finances part of this bet with low-interest yen bonds—borrowing at about 0.5% while collecting much higher yields. As Buffett noted in his February 2025 shareholder letter, “the annual dividend income expected from the Japanese investments in 2025 will total about $812 million and the interest cost of our yen-denominated debt will be about $135 million.” That’s a classic Buffett move: using safe leverage to deliver steady income.

How Regular Investors Can Invest in Japan Too

You don’t need billions or a yen bond desk to copy Buffett’s strategy. Everyday investors have easier routes:

• Japan-focused exchange-traded funds (ETFs): Funds like the iShares MSCI Japan ETF (EWJ) or Franklin FTSE Japan ETF (FLJP) give broad exposure to Japanese equities, including the trading houses. Their shares have appreciated 17% and 18%, respectively, since the beginning of the year.
• Single-stock access: Some brokers allow direct purchase of Japanese shares, but note that higher fees may apply for buying into foreign markets.
• American depositary receipts (ADRs) on U.S. markets: All five trading houses trade over-the-counter in the U.S.—Mitsubishi (MSBHF), Mitsui (MITSY), Itochu (ITOCY), Marubeni (MARUY), and Sumitomo (SSUMY)—so you can buy shares through your regular brokerage account. ADRs are certificates issued by a U.S. bank that represent shares of a foreign company. While they make it easier to invest abroad, fewer shares of them trade than their originals in Japan, which could push your costs upward.

The Bottom Line

Warren Buffett’s $30 billion bet on Japan’s trading houses shows that he sees value in companies that are globally diversified, underpriced by the market, and committed to rewarding shareholders. For regular investors, Japan exposure is easiest through ETFs, though you’ll need to keep an eye on currency swings and fund costs like their expense ratios.

You don’t need Buffett’s billions to follow his lead—but you do need patience and a long-term mindset.