Mitsui & Co Ltd: Berkshire Hathaway Boosts Confidence with Increased Stake

In a significant move that has sent ripples through the financial markets, Warren Buffett’s Berkshire Hathaway has increased its stakes in two of Japan’s largest trading houses, Mitsubishi Corp and Mitsui & Co. This strategic investment has not only underscored Buffett’s confidence in these companies but has also buoyed their share prices, reflecting a positive outlook for the sector.

A Vote of Confidence

On August 28, 2025, Berkshire Hathaway, through its wholly-owned unit National Indemnity Company, raised its stake in Mitsubishi Corp to 10.23% from 9.74%, as disclosed by the company. Similarly, Mitsui & Co confirmed an increase in Berkshire’s stake. This move is seen as a strong vote of confidence in the Japanese trading houses, which are integral to the global supply chain, dealing in commodities ranging from iron and steel to chemicals and energy.

Impact on Shares

The announcement led to a noticeable jump in shares across the sector. Mitsui & Co, a diversified general trading company with operations in various sectors including machinery, chemicals, and energy, saw its shares rise. As of August 26, 2025, Mitsui’s close price was 3335 JPY, with a market capitalization of 9.65 trillion JPY. The company’s price-to-earnings ratio stood at 11.767, indicating a robust financial standing.

Market Context

The broader market context also played a role in the sector’s performance. Asian shares, including those in Japan, ended mostly higher on the same day, buoyed by Nvidia’s strong results which alleviated concerns over weakening AI demand. However, regional gains were tempered by worries over the Federal Reserve’s independence and potential tariff increases by the Mexican government on Chinese imports.

Strategic Implications

For Mitsui & Co, the increased stake by Berkshire Hathaway could open up new strategic opportunities. As a company with a long history dating back to its IPO in 1949, Mitsui has a diverse portfolio that includes real estate and overseas development projects. The backing of a global investment giant like Berkshire could enhance its ability to expand and innovate in these areas.

Conclusion

The increased stake by Berkshire Hathaway in Mitsui & Co and Mitsubishi Corp is a testament to the enduring strength and strategic importance of Japan’s trading houses. As Mitsui continues to navigate the complexities of the global market, this investment could serve as a catalyst for further growth and development. Investors and market watchers will undoubtedly keep a close eye on how this partnership unfolds in the coming months.