Warren Buffett Says Japan Is Not Worth Investing In, But He's Worth $23 Billion?

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, is known worldwide for his no-nonsense, value-driven investment philosophy. So when headlines started buzzing with claims that “Warren Buffett says Japan is not worth investing in,” it naturally raised eyebrows. But here's the catch—those claims don’t reflect the full story.

In reality, Buffett has shown increasing confidence in Japan’s market, pouring billions into the country’s largest trading houses. This article dives into what Buffett actually said, why he’s betting big on Japan, and what investors—especially in 2025—can learn from his strategy.

Warren Buffett’s Real Thoughts on Investing in Japan

Despite what some clickbait headlines suggest, Buffett hasn’t dismissed Japan at all. In fact, he’s been quietly building a substantial stake in five major Japanese trading companies. In his 2025 shareholder letter, Buffett described Japan as a “small but important exception” to Berkshire Hathaway’s usual U.S.-centric portfolio.

These five firms—Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo—fit neatly into Berkshire’s playbook: solid financials, undervalued stock prices, and strong, diversified business models. Since first investing in 2019, Buffett has deepened his conviction, praising the companies’ sound management, disciplined capital use, and consistent shareholder returns.

By the end of 2024, Berkshire’s position in these companies had grown to $23.5 billion, up from an initial investment of $13.8 billion—a strong endorsement of Japan’s potential.

Why Buffett Is Bullish on Japan

Buffett’s decision to go big on Japan wasn’t random. Several compelling reasons explain why he’s all in:

• Undervalued Opportunities: These companies were trading at low price-to-book ratios when Berkshire began buying in. While others hesitated, Buffett saw long-term value.
  
   
• Corporate Reforms: Japan’s evolving corporate governance has made its companies more transparent, efficient, and shareholder-friendly—something Buffett values highly.
  
   
• Solid Leadership: The trading houses are led by conservative, disciplined executives who allocate capital wisely and consistently raise dividends.
  
   
• Global Footprints: These aren't just local firms—they operate globally across industries like energy, retail, tech, and logistics, mirroring Berkshire’s own diverse portfolio.
  
   
• Smart Currency Play: By borrowing in yen at fixed rates, Berkshire reduced currency risk and took advantage of Japan’s low interest environment—a savvy move known as the “carry trade.”
  
   

In short, Buffett spotted an overlooked opportunity and acted on it with trademark patience and precision.

Read Also: Warren Buffet’s Big Bet on Japan 

The Numbers Speak: $23 Billion and Growing

Berkshire Hathaway’s investments in the five trading houses have soared to over $23.5 billion, with unrealized gains nearing $10 billion. Expected annual dividends from these holdings in 2025 alone are $812 million, while the cost of yen-denominated debt remains a modest $135 million.

Even more telling: the companies recently agreed to remove the 10% cap on ownership, paving the way for Berkshire to potentially deepen its stakes further. It’s a clear sign of the mutual trust between Buffett and Japan’s business leaders.

What This Means for Investors

Whether you're new to investing or a seasoned crypto enthusiast, Buffett’s approach offers key takeaways:

• Ignore the Noise: Viral headlines often distort the facts. Always look at the data and actions behind the words.
  
   
• Value Works Everywhere: Buffett’s Japan play is a textbook example of global value investing—buying quality companies at a discount.
  
   
• Play the Long Game: Buffett isn’t flipping stocks. He plans to hold these positions for decades, benefiting from compounded returns over time.
  
   
• Diversify Wisely: Even the most U.S.-centric investor understands the importance of global exposure when opportunity knocks.
  
   

Interested investors might want to explore stocks like Itochu (ITOCY), Marubeni (MARUY), Mitsubishi (MSBHY), Mitsui (MITSY), and Sumitomo (SSUMY)—but as always, consult a financial advisor before making any decisions.

Conclusion

So, did Warren Buffett say Japan isn’t worth investing in? Absolutely not. In fact, he’s putting his money where his mouth is—over $23 billion worth. His long-term bet on Japanese trading houses reflects his belief in value, strong leadership, and global diversification. As Japan’s corporate landscape continues to evolve, Buffett’s contrarian move might turn out to be one of his smartest plays yet.

FAQ

Did Warren Buffett say Japan is not worth investing in?
No. Buffett has praised several Japanese firms and significantly expanded Berkshire Hathaway’s investments there since 2019.

Which Japanese companies has Buffett invested in?
Berkshire owns stakes in five major trading houses: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo.

Why does Buffett like these Japanese companies?
He values their disciplined leadership, strong capital strategies, shareholder focus, and low valuations.

How much has Berkshire Hathaway invested in Japan?
As of late 2024, about $23.5 billion—with projected annual dividends of $812 million.

Is Buffett planning to invest more in Japan?
Yes. With ownership caps lifted, Berkshire has room to increase its stakes even further.