Some of Berkshire's Newest Bets Aren't American. Greg Abel Bought 3 Japanese Trading Houses Last Quarter.
2026-07-18 04:19
•Daniel Sparks •The Motley Fool
••••• •••• Axe Capital view
Berkshire’s Bet on Japan: What It Means for SA Investors
Greg Abel’s Japan move shows smart capital allocation, but South African exposure is limited.
Berkshire Hathaway’s new CEO Greg Abel is quietly building a sizable position in Japanese trading houses like Mitsubishi, Sumitomo, and Marubeni. These firms offer steady dividends, backed by cheap local debt, delivering yields well over 5% on the initial investment. For South African investors, the direct link is thin—these are overseas bets far from JSE-listed companies. However, one angle worth watching is the rand’s sensitivity to global yield shifts. If Japanese yields remain low and investors flock to yield elsewhere, the USD/ZAR could weaken, benefiting exporters like AngloGold Ashanti or MTN. That said, rand movements often hinge more on local factors like inflation and political stability than foreign dividend plays. The risk is that unforeseen shocks in global markets or a sudden shift in US or Chinese demand drag the rand lower despite these yield plays. So, while the trade is elegant, I’d keep this more as a curiosity than actionable for now. this is just my opinion and not financial advice
I would watch the USD/ZAR closely for signs of foreign yield-driven flows but avoid jumping into Japanese-related assets through the JSE. Instead, maintain holdings in strong local dividend payers like Standard Bank or MTN that benefit directly from rand strength.
- USD/ZAR
- Standard Bank
- MTN
- Global yield shocks impacting capital flows
- Rand volatility driven by local inflation or political events
5/10
Under new CEO Greg Abel, Berkshire Hathaway has increased its stakes in three Japanese trading houses—Mitsubishi, Sumitomo, and Marubeni—during Q2 2026. Berkshire's combined five trading house positions, worth $35.4 billion (up from $23.5 billion a year prior), generate $862 million in annual dividends and are funded with cheap yen-denominated debt at 1.2% interest, creating an attractive 5.6% yield on original cost.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Daniel Sparks
Categories: Rates, Equities, Earnings, Capital Returns, Forex
Tickers: BRK.A, BRK.B, SSUMY, MARUY
Sentiment: Positive - New CEO Abel's strategic purchases of profitable Japanese conglomerates at low valuations, funded with cheap fixed-rate debt and generating substantial dividends, demonstrate disciplined capital allocation and long-term value creation aligned with Berkshire's core investment philosophy. Berkshire raised its ownership to 10.3% (up 1 percentage point), with the position growing from $1.9 billion cost to $4.0 billion value, and paying $102 million in dividends, demonstrating strong value appreciation.
Keywords: Japanese trading houses, international expansion, dividend investing, cheap debt financing, conglomerate strategy
Insights:
- BRK.A: Positive: New CEO Abel's strategic purchases of profitable Japanese conglomerates at low valuations, funded with cheap fixed-rate debt and generating substantial dividends, demonstrate disciplined capital allocation and long-term value creation aligned with Berkshire's core investment philosophy.
- BRK.B: Positive: New CEO Abel's strategic purchases of profitable Japanese conglomerates at low valuations, funded with cheap fixed-rate debt and generating substantial dividends, demonstrate disciplined capital allocation and long-term value creation aligned with Berkshire's core investment philosophy.
- SSUMY: Positive: Berkshire raised its ownership to 10.3% (up 1 percentage point), with the position growing from $1.9 billion cost to $4.0 billion value, and paying $102 million in dividends, demonstrating strong value appreciation.