Jackyenjoyphotography/Getty Images
Warren Buffett increased Berkshire Hathaway’s stakes in five Japanese trading houses, according to regulatory filings Monday. The move comes weeks after Buffett told Berkshire shareholders that its stakes in the diversified companies were likely to “increase somewhat” over time.
Japanese stocks closed higher, with the Nikkei 225 index jumping nearly 1 percent.
Berkshire’s Japan investments, which date back to July 2019, have sparked interest among investors about how to get exposure to Japanese stocks. Here’s more on Berkshire’s investments and three Japan ETFs to consider for your portfolio.
Berkshire Hathaway’s Japan investments
| Company | Berkshire Hathaway ownership |
|---|---|
| ITOCHU | 8.53 percent |
| Marubeni | 9.3 percent |
| Mitsubishi | 9.67 percent |
| Mitsui | 9.82 percent |
| Sumitomo | 9.29 percent |
Source: Bloomberg, March 17, 2015.
Berkshire began buying the five Japanese stocks in July 2019, after Buffett says he looked at the companies’ financial records and was “amazed at the low prices of their stocks.” The companies own many different businesses and operate similarly to Berkshire, according to Buffett.
Need an advisor?
Need expert guidance when it comes to managing your investments or planning for retirement?
Bankrate’s AdvisorMatch can connect you to a CFP® professional to help you achieve your financial goals.
Buffett praised the companies for their capital allocation in his 2024 letter to shareholders, saying, “Each of the five companies increase dividends when appropriate, they repurchase their shares when it is sensible to do so, and their top managers are far less aggressive in their compensation programs than their U.S. counterparts.”
At the end of 2024, Berkshire’s holdings in the five companies were valued at $23.5 billion, compared to a cost of $13.8 billion. Buffett said he expects Berkshire to hold the positions for many decades.
3 Japan ETFs to consider for your portfolio
Data as of March 14, 2025.
1. iShares MSCI Japan Value ETF (EWJV)
This ETF tracks an index composed of large- and mid-cap Japanese stocks with value characteristics. Its top holdings include Toyota Motor, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Nintendo. The fund has about 40 percent of its assets in the top 10 holdings.
- 5-year returns (annualized): 15.0 percent
- Expense ratio: 0.15 percent
- Dividend yield: 3.9 percent
- Assets: $280.4 million
2. JPMorgan BetaBuilders Japan ETF (BBJP)
This ETF is designed to provide broad exposure to the Japanese stock market. Its top holdings include Toyota Motor, Mitsubishi UFJ Financial Group, Sony and Hitachi. The fund has about 27 percent of its assets in the top 10 holdings.
- 5-year returns (annualized): 11.1 percent
- Expense ratio: 0.19 percent
- Dividend yield: 2.7 percent
- Assets: $12.0 billion
3. Franklin FTSE Japan ETF (FLJP)
This ETF gives investors access to the Japanese stock market at a low cost. Its top holdings include Toyota Motor, Mitsubishi UFJ Financial Group, Sony and Hitachi. The fund’s top 10 holdings account for about 24 percent of the portfolio’s value.
- 5-year returns (annualized): 11.3 percent
- Expense ratio: 0.09 percent
- Dividend yield: 4.5 percent
- Assets: $1.9 billion
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
Read the full article here
