Warren Buffett’s Japan bet nets Berkshire Hathaway $24 billion

Even after stepping down as CEO of Berkshire Hathaway last year, Warren Buffett’s investment acumen continues to deliver substantial returns. A particularly shrewd bet made in 2020 is now yielding significant gains, demonstrating that the legendary investor still has a knack for identifying undervalued opportunities.

A Contrarian Play Pays Off

In 2020, Berkshire Hathaway announced it had acquired stakes—worth around $6.25 billion total, and exceeding 5% in each firm—in five major Japanese trading companies. The company indicated this was intended as a long-term strategy, with potential for increased investment. Over the past five years, Berkshire Hathaway has indeed increased its holdings in these companies, capitalizing on growth in the Japanese stock market.

Did You Know? In 2025, overseas stock markets soared 28%, outperforming the S&P 500’s 16% growth.

Today, Berkshire’s Japanese portfolio is valued at over $30 billion, representing a $24 billion profit in just half a decade. This success isn’t solely due to Buffett’s investment choices; recent policy changes in Japan—including corporate governance reform and pro-growth government spending—have also played a role, particularly benefiting technology companies.

The “Sell America” Trend

The gains from this investment also reflect a broader trend of international markets outperforming their U.S. Counterparts. This has contributed to a recent “Sell America” trend, as investors re-evaluate their exposure to U.S. Assets. While Berkshire Hathaway remains largely invested in the U.S., this Japanese venture highlights the potential benefits of diversifying globally.

Expert Insight: Buffett’s success in Japan underscores the importance of identifying undervalued markets and recognising the impact of evolving economic policies. While the U.S. Remains a key investment landscape, this move demonstrates the potential for significant returns by looking beyond domestic borders.

Buffett began building stakes in these five Japanese sogo shosha—large, diversified firms involved in sectors ranging from energy to electronics—starting in 2019. He increased those stakes in both 2023 and 2025.

Navigating Japan’s Economic Landscape

The initial investment occurred during a period of economic stagnation in Japan, often referred to as its “lost decades” following an asset market crash in 1989. However, Buffett strategically financed the bet using low-interest debt in Japanese yen—around 1%—while the trading houses provided dividends of approximately 4%, effectively covering the costs.

Political shifts have further bolstered these investments. Japan, under Prime Minister Sanae Takaichi since October, has adopted pro-growth and deregulatory policies, driving its stock market to record highs. Takaichi’s recent landslide election victory provides a strong mandate for her economic agenda.

Despite these positive developments, Japan’s economic landscape isn’t without challenges. The country experienced a technical recession in 2024 due to high inflation and weak domestic demand, and faces ongoing risks of further economic downturn. Stimulus measures proposed by Takaichi have also raised concerns among bond vigilantes and analysts regarding a potential debt crisis.

Looking Ahead

Despite these economic uncertainties, Buffett’s investment has proven remarkably successful. He has stated his intention to hold these stocks for the long term—10 to 20 years—suggesting continued confidence in the Japanese market. Berkshire Hathaway could further increase its holdings, should favorable conditions persist. Alternatively, the company may maintain its current position, benefiting from the dividends and long-term growth potential of these firms. Analysts expect continued volatility in the Japanese economy, but believe the current political and economic trajectory could sustain positive market performance in the near future.

Frequently Asked Questions

What type of companies did Berkshire Hathaway invest in?

Berkshire Hathaway invested in five major Japanese sogo shosha companies, which are large and diversified firms active in a wide range of industries, including energy and electronics.

When did Berkshire Hathaway begin investing in these Japanese companies?

Berkshire Hathaway first announced its positions in these companies in 2020, but began building stakes as early as 2019.

How much profit has Berkshire Hathaway made from this investment?

Berkshire Hathaway’s Japanese portfolio is now worth more than $30 billion, representing a $24 billion profit in the past five years.

As global economic dynamics continue to shift, how might investors balance opportunities in both domestic and international markets?