As global markets turned volatile in early 2025, Warren Buffett saw opportunity. While many investors sold, Buffett doubled down on a group of Japanese trading houses. These five companies Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo received fresh capital from Berkshire Hathaway in March.
These stock additions weren’t random. Buffett has a long history with these firms. In fact, he first bought into them in 2019. Back then, he cited their low valuations and strong business models. Today, he seems even more confident. Buffett doubles down during a time when others retreat.
What sets these companies apart? For one, their business structures resemble Berkshire itself. Each is a diversified conglomerate with global operations. Buffett understands them well. More importantly, he trusts their management.
In his latest shareholder letter, Buffett praised their capital deployment. He liked their dividend policies, stock buybacks, and executive compensation strategies. According to him, those actions show clear respect for shareholders.
Valuation also plays a key role. Among the five, Itochu trades at a price-to-earnings ratio of 10.5 the highest in the group. The others are even cheaper. Sumitomo and Mitsubishi trade at 9.72 and 9.52. Marubeni and Mitsui sit at 8.21 and 7.82, respectively.
Buffett’s buying spree in March was especially notable. It came during a steep market correction sparked by tariff fears. Earlier moves in January and February included buying more Verisign, Sirius XM, and Occidental Petroleum. However, the key investments during the actual downturn were in Japan.
Despite being a net seller for nine straight quarters, Buffett doubles down on these specific stocks. This reversal signals strong conviction. Even more, he made it clear these positions are long-term.
In his letter, Buffett wrote that he expects Greg Abel, his chosen successor, to keep holding them for decades. He also hinted at future partnerships between Berkshire and these Japanese firms.
Investors worldwide are watching. Buffett’s actions often point to long-term value. While uncertainty dominates headlines, one message is clear Buffett doubles down when others hesitate.
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