Abel bets $46 billion on Japan-focused investments as Berkshire Hathaway targets value in sogo shosha and Tokio Marine

On Dec. 31, 95-year-old billionaire Warren Buffett stepped down as CEO of Berkshire Hathaway and handed day-to-day control to his successor, Greg Abel. Buffett remains chairman of the board, but Abel now oversees Berkshire’s operations, including its $316 billion investment portfolio.

Abel has pledged to preserve the long-term approach and investment ethos that helped Berkshire and its shareholders prosper under Buffett. While Buffett and Abel have approved $78 billion in share buybacks since July 2018, Abel’s largest strategic bet—centered on Japan—has drawn particular attention.

Abel’s Japan-focused investment strategy

Although Buffett repeatedly advised investors not to bet against America, Abel’s top investment ideas are concentrated in Japan. Beginning in the summer of 2019, Buffett and Abel built Berkshire Hathaway’s stakes in Japan’s five major trading houses, known as “sogo shosha.” Including purchases approved by Abel after Buffett’s retirement as CEO, Berkshire’s holdings in these companies (as of April 5, 2026) have grown to:

• Mitsubishi: $13.27 billion
• Mitsui: $11.69 billion
• Itochu: $8.62 billion
• Marubeni: $5.74 billion
• Sumitomo: $4.23 billion

In March, Berkshire (via National Indemnity) also took a $1.8 billion position in Japanese insurer Tokio Marine, which is now worth about $2.2 billion.

Scale of exposure

Collectively, Abel has approximately $46 billion of Berkshire’s $316 billion investment portfolio allocated to influential Japanese businesses.

Three traits Abel appears to value in Japanese stocks

The article highlights three characteristics shared by Berkshire’s Japan holdings—particularly the sogo shosha and Tokio Marine—that align with Abel’s long-term checklist.

1) Capital-return orientation

Many of Japan’s largest public companies maintain robust capital-return programs, including share buybacks and dividends. The article says these policies encourage long-term ownership and help reduce share-price volatility. It also notes that Buffett has historically favored repurchasing Berkshire shares when financially sensible.

2) Modest executive compensation

The management teams of the sogo shosha are described as receiving modest compensation, contrasting with some U.S. businesses where executive pay is characterized as excessive. The article frames reasonable compensation as a way to keep shareholder interests prioritized.

3) Valuation support

The article argues that Japanese stocks offer a value proposition that is difficult to find in the U.S. It states that the U.S. stock market began the year at its second-priciest valuation over the last 155 years. By comparison, it says Mitsubishi, Mitsui, Itochu, Marubeni, Sumitomo, and Tokio Marine have historically traded at high single-digit to low double-digit price-to-earnings ratios.

Focus on finding value

Overall, the article concludes that getting a “good deal” is central to Abel’s investment approach.