Even Berkshire Hathaway, the multinational conglomerate controlled by the world’s greatest investor Warren Buffett, is pivoting. Most recently, the company accelerated the shift of its assets to Japanese companies and disposed of its remaining stake in Chinese electric vehicle maker BYD. The move ratchets up Berkshire’s long-running efforts to diversify its portfolio. Their recent quarterly financial disclosures have shown plenty of signs in that direction as covered here.
As of today, this makes Berkshire Hathaway’s top U.S. and Japan publicly traded stock holdings, strategically. This action sends a clear signal of Japan-centric intentions. The company currently has a 9.8% stake in Mitsui with 28,540,140 shares. This update is based on a March 17th disclosure. Most importantly, Mitsui has recently allowed for Berkshire to cross the 10% threshold in its voting rights thanks to recent purchases. Berkshire’s ownership in Mitsubishi has risen from 9.7% to 10.2%, according to a regulatory filing today.
Berkshire Hathaway has expanded its presence in Japan through stakes in several key companies, including Itochu, Mitsui, Mitsubishi, Marubeni, and Sumitomo. The exact shareholdings in Itochu, Marubeni and Sumitomo are as yet unpublished. All signs point to these stakes being well over 10% at this point. Berkshire Hathaway’s current holdings in the Japanese stocks amount to an estimated $7.3 billion, according to Yahoo Finance data. This figure is a direct result of today’s turbulent market.
In May of this year, the conglomerate sold the rest of its stake in BYD after a two-decade partnership. BYD’s Executive Vice President Stella Li expressed gratitude towards Warren Buffett and Charlie Munger for their support over the past 17 years. She stated, “We are grateful for Charlie Munger’s and Warren Buffett’s recognition of BYD, as well as for the investment, support, and companionship over the past 17 years.”
As BYD’s Li Yunfei pointed out, Berkshire started cashing out on the ride-hailing and EV maker as far back as August 2022. “Investing in stocks involves both buying and selling, which is completely normal,” he said. This strategic exit from BYD marks a return to form for Berkshire, which has long sought to diversify its portfolio through both acquisitions and strategic divestitures.
“We’ve been extremely glad to have had Buffett as an investor, but the fact that he monetised his position is exactly what Berkshire Hathaway does for a living: buying, earning and selling.” – Alfredo Altavilla
As always, Berkshire has made some interesting recent moves in its portfolio. This adjustment is a continuation of a positive trend of rebalancing investments to meet changing market demands. The company is continuously working on increasing its presence in the Japanese market. This strategic relocation is indicative of its deep confidence in the recovery and growth trajectory of the Japanese economy.
Mitsui executives are interpreting Berkshire’s move as signalling a disciplined investment approach. This strategy is intended to help amplify Berkshire’s voice in key industries. “They now hold 10% or more of the voting rights in Mitsui as a result of an additional acquisition of our shares,” said a Mitsui representative.
As these exciting developments continue to play out, Berkshire Hathaway has proven to be an integral player inside the Japanese and Chinese markets. How the company pivots investment strategy will be watched carefully both by industry analysts and the investor community.