Berkshire Hathaway Strengthens Investments in Japanese Stocks as Cash Balance Grows

Warren Buffett's Berkshire Hathaway has announced a significant increase in its investments in five major Japanese companies. This move marks a rare shift from the conglomerate's typical U.S.-focused investment strategy. In his recent letter to shareholders, Buffett revealed that Berkshire Hathaway's performance had exceeded expectations in the fourth quarter of 2024.

Berkshire Hathaway began acquiring shares in five prominent Japanese listed companies—ITOCHU (TYO: 8001), Marubeni (TYO: 8002), Mitsubishi (TYO: 8058), Mitsui (TYO: 8031), and Sumitomo (TYO: 8053)—back in July 2019. Warren Buffett expressed admiration for these companies, citing their attractive pricing and shareholder-friendly practices.

Unlike many counterparts in the U.S., these Japanese firms are noted for their favourable dividend policies, strategic share repurchases, and restrained executive compensation programs.

The company's operating earnings saw a remarkable increase of 71%, reaching $14.5 billion in Q4 2024, demonstrating the effectiveness of its diversified investment strategy. Furthermore, despite a slight drop of 0.64% in its class B shares on Friday, Berkshire has shown significant growth of 6.13% in 2025 and an impressive 17.01% over the past year.

In addition to these developments, Berkshire's cash reserves hit a record $334.2 billion by the end of 2024, providing the company with substantial liquidity for future investments. This financial position underscores Berkshire's long-term strategic flexibility and its capacity to capitalize on global opportunities as they arise.