Key facts
- Itochu President Keita Ishii highlighted diversification as the core strength of Japanese trading houses.
- Berkshire Hathaway's 2019 investments in five major sōgō shōsha have grown to nearly 10% stakes.
- Itochu achieved a record ¥900.3 billion net profit in fiscal year 2025 and targets ¥950 billion for fiscal year 2026.
- The company plans significant growth investments and active share buybacks.
- Warren Buffett views these investments as long-term holdings, appreciating their diversified business models and shareholder returns.
Itochu President Keita Ishii highlighted the inherent strength of Japan's diversified trading houses, known as sōgō shōsha, in navigating uncertain global economic conditions. He noted that Berkshire Hathaway's investments in these companies seven years ago significantly boosted their international profile and stock valuations.
In a recent interview, Ishii pointed to Itochu's record consolidated net profit of ¥900.3 billion for the fiscal year ended March 31, 2026, attributing the success to investments in non-resource sectors. The company has set an ambitious target of ¥950 billion for the current fiscal year and plans to continue substantial growth investments, up to ¥1.5 trillion, while adhering to principles of "earn, cut, prevent" to enhance corporate value.
Berkshire Hathaway, led by Warren Buffett, has been a significant investor in these trading houses since 2019. The conglomerate has progressively increased its stakes, now holding as high as 9.8% in some companies, with a total investment of $23.5 billion. Buffett has expressed a long-term commitment, aiming to hold these investments for 50 years or more, citing their diversified operations, shareholder-friendly policies, and consistent dividend growth as key attractions. Berkshire Hathaway has also strategically issued yen-denominated bonds to mitigate currency risks associated with these investments.