Why Berkshire Hathaway is Expanding Its Investments in Japan?

Berkshire Hathaway (BRK.B) has been steadily increasing its stakes in Japan’s five companies — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — since initiating investment in July 2019. These companies operate across diverse sectors, such as energy, commodities, logistics, and technology. Known for prudent management, disciplined capital allocation, and shareholder-friendly practices like dividends and buybacks, they fit well within Berkshire’s long-term investment framework. By the end of 2024, Berkshire’s aggregate investment cost stood at $13.8 billion, while the market value of its stakes had grown to $23.5 billion.

Several dynamics underpin Berkshire’s continued expansion in Japan. Corporate governance reforms have enhanced transparency and capital efficiency, making Japanese companies more attractive to foreign investors. Meanwhile, Japanese companies trade at relatively modest valuations compared to U.S. peers, offering compelling opportunities for stable returns.

Berkshire has also structured its financing strategically. By issuing yen-denominated bonds, it has limited currency exposure while capitalizing on Japan’s low-cost debt environment. In 2025, the conglomerate is estimated to receive about $812 million in annual dividends, while incurring only $135 million in interest expenses. Favorable yen-dollar movements have added further upside, delivering billions in after-tax gains.

Beyond near-term income, these holdings grant Berkshire exposure to enterprises that underpin Japan’s industrial and resource networks, while creating optionality for deeper partnerships in Asia. Overall, Berkshire’s growing investments in Japan enhance recurring income, broaden geographic diversification, and strengthen its long-term earnings resilience in an uncertain global landscape.

What About Other Insurers?

MetLife MET, a major U.S. insurer, has built a strong, long-term presence in Japan. MetLife’s most transformative move was acquiring Alico in 2010, positioning MetLife as a leading force in Japan’s life insurance sector and reinforcing its strategic growth ambitions in Asia.

Aflac Incorporated AFL established Aflac Ventures Japan in 2019 to invest in cancer care, HealthTech, and InsurTech startups, fostering innovation for Aflac Life Insurance Japan. Earlier in 2018, Aflac converted its Japanese branch into a subsidiary. Today, Japan remains a vital revenue driver, underscoring Aflac’s strategic commitment.

BRK.B’s Price Performance

Shares of BRK.B have gained 7.9% year to date, outperforming the industry.

BRK.B’s Expensive Valuation

BRK.B trades at a price-to-book value ratio of 1.57, above the industry average of 1.54. It carries a Value Score of D.

No Estimate Movement for BRK.B

The Zacks Consensus Estimate for BRK.B’s third-quarter and fourth-quarter 2025 EPS has witnessed no movement over the past 30 days. The consensus estimate for full-year 2025 and 2026 EPS has also witnessed no movement over the past 30 days.
 

The consensus estimates for BRK.B’s 2025 and 2026 revenues indicate year-over-year increases. While the consensus estimate for BRK.B’s 2025 EPS indicates a decline, the same for 2026 suggests an increase.  

BRK.B stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research