Berkshire Hathaway acquired roughly 5% stakes in five major Japanese trading companies in 2020, an initial $6.25 billion investment. Over five years Berkshire increased those holdings repeatedly as Japanese stocks rose. The Japanese portfolio now exceeds $30 billion, producing about $24 billion in gains. The gains reflected purchases of undervalued stocks plus Japanese corporate governance reforms and pro-growth policies that aided technology firms. International equities, including Japan, have outperformed many U.S. assets recently, contributing to a 'Sell America' trend among investors. Berkshire remains heavily invested in the U.S. but demonstrated significant upside from global diversification.
"In 2020, Buffett's investing vehicle announced it had acquired positions in five major Japanese trading companies. The stakes were worth slightly more than 5% in each firm, around $6.25 billion in total. At the time, Berkshire Hathaway signaled it was part of a long-term strategy, and the company was open to increasing its stakes under the right circumstances. Fast-forward five years, and the Omaha-based giant did increase its holdings-"
"Berkshire's Japanese portfolio is now worth more than $30 billion, notching the company $24 billion in half a decade. Those numbers are a result of both Buffett's shrewd calls on stocks that ended up being undervalued, as well as recent policy changes in Japan, including widespread corporate governance reforms and new pro-growth government rules and spending that have benefited technology companies."
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