Berkshire Hathaway CEO Greg Abel reaffirms support for Japanese trading houses

Warren Buffett spent decades telling investors that his favorite holding period is “forever.” His successor appears to have gotten the memo. Greg Abel, who took the reins as Berkshire Hathaway’s CEO, used a CNBC interview to double down on the conglomerate’s commitment to five Japanese trading houses, with stakes now exceeding 10% in each company. The investments, which started as roughly 5% positions during 2019-2020, have more than doubled in value and now represent a cornerstone of Berkshire’s international diversification strategy. A $13.8 billion bet on Japan’s old guard Berkshire’s Japanese portfolio spans five of the country’s most prominent trading conglomerates: Itochu, Marubeni, Mitsubishi Corp, Mitsui & Co., and Sumitomo Corp. Together, the aggregate investment has reached roughly $13.8B. Abel indicated that these holdings could be maintained “for many decades,” language that would make Buffett proud. The positions have generated hundreds of millions in annual dividend income, turning what initially looked like a contrarian play into one of Berkshire’s most productive international bets. Each of the five companies approved Berkshire’s stake increase above the 10% thr...