Berkshire’s Japan Bets: ETFs Rise on Buffett’s Increased Holdings
Chicago, IL – August 29, 2025 – Zacks.com released an analysis highlighting investment activity among Berkshire Hathaway’s holdings, specifically focusing on the firm’s increased stakes in Japanese trading houses. The report details the company’s expanded investments in Mitsubishi Corp. and Mitsui & Co., contributing to a rally in shares of these trading firms and several ETFs that track the Japanese market. The analysis underscores the company’s confidence in Japan’s economic outlook and the increasing proactive strategies adopted by these conglomerates.
The increased investments in Mitsubishi and Mitsui, disclosed in August 2025, triggered a significant shift in sentiment. Berkshire Hathaway’s unit raised its voting rights stake in Mitsubishi to 10.23%, up from 9.74% recorded in March. Simultaneously, Mitsui confirmed a similar increase in Berkshire’s holding, though it remained below the 10% threshold. Bloomberg data revealed Berkshire’s initial ownership of Mitsui shares at 9.82% as of March. The trading houses’ shares responded with a considerable surge.
Berkshire’s strategic shift towards Japanese trading houses has been a gradual process, initiated in 2020. This continuous accumulation of positions has, according to Norikazu Shimizu of Iwai Cosmo Securities, “brought renewed attention” to these corporate structures. Shimizu noted that the firms are now “more proactive” in returning value to shareholders through buybacks, a shift from traditional investment approaches. Management at Mitsui further indicated a commitment to strengthening the company’s overall business portfolio, reflecting a forward-looking strategy.
Several key factors support the investment thesis. Japan’s GDP experienced sequential growth of 0.3% in Q2 2025, exceeding market expectations of 0.1% and marking the fifth consecutive quarterly expansion. This demonstrates a resilient Japanese economy, providing a foundation for sustained growth. The performance of Japanese ETFs – including First Trust Japan AlphaDEX Fund (FJP), iShares MSCI Japan Value ETF (EWJV), WisdomTree Japan SmallCap Dividend Fund (DFJ), iShares MSCI Japan Small Cap ETF (SCJ), and Franklin FTSE Japan Hedged ETF (FLJH) – has been notable, outperforming the SPDR S&P 500 ETF (SPY) over the past month. These ETFs leveraged the market’s bullish sentiment, capturing gains driven by the underlying economic trends.
Furthermore, the valuation of these Japanese stocks remains attractive when compared to U.S. equities. The ETFs exhibit a P/E ratio of 16.29X, 14.37X, 15.27X, 19.4X, and 21.85X respectively, significantly lower than the S&P 500’s P/E of about 33.75X, providing investors with a compelling value proposition. This disparity adds further incentive considering the robust GDP growth.
The analysis concludes by recommending consideration of these ETFs as part of a diversified portfolio. Investors should acknowledge that past performance is not indicative of future results and that all investments carry inherent risks. The numbers presented from hypothetical portfolios consisting of stocks with a Zacks Rank of 1 and were rebalanced monthly with zero transaction costs – these are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. To obtain information about the performance numbers displayed in this press release, please visit https://www.zacks.com/performance.
