Mitsui
Company Overview
Mitsui & Co. is one of Japan's oldest and largest general trading companies (sogo shosha), with a history tracing to the Mitsui family merchant network of the 17th century. Among the five Japanese trading companies Berkshire acquired stakes in, Mitsui has particular strength in metals, minerals, infrastructure, and new energy investments.
Investment Story
2020–2023: Berkshire's ~8% stake. Berkshire's Mitsui position grew from approximately $1.25 billion in 2020 to approximately $2+ billion by 2023 as Berkshire increased its stake. Mitsui's diversified commodity and infrastructure exposure — iron ore, liquefied natural gas, chemicals, logistics — complements Berkshire's existing large-business portfolio with international commodity market exposure.
Mitsui's distinctive strength. Among the five trading companies, Mitsui has historically been strongest in raw materials and infrastructure — its stakes in Australian iron ore, global LNG projects, and chemical trading reflect deep expertise in commodity businesses that Berkshire otherwise has limited direct exposure to. The diversification into genuine international commodity exposure, indirectly and at low leverage, adds something unique to Berkshire's portfolio.
Buffett's Own Words
Mitsui & Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7 1,621 2,219 24,669,778 Moody’s Corporation . . . . . . . . . . . . . . . . . . . . . . . . . 13.3 9,636 143,456,055 U.S. Bancorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.7 5,384 8,058 158,824,575 Verizon Communications Inc. . . . . . . . . . . . . . . . . . . 3.8 9,387 8,253 Others** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,629 39,972 Total Equity Investments Carried at Market . . .*
In certain important ways, all five companies – Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo – follow shareholder-friendly policies that are much superior to those customarily practiced in the U.S. Since we began our Japanese purchases, each of the five has reduced the number of its outstanding shares at attractive prices. Meanwhile, the managements of all five companies have been far less aggressive about their own compensation than is typical in the United States. Note as well that each of the five is apply
*Berkshire itself. The five are (alphabetically) ITOCHU, Marubeni, Mitsubishi, Mitsui and Sumitomo. Each of these large enterprises, in turn, owns interests in a vast array of businesses, many based in Japan but others that operate throughout the world. Berkshire made its first purchases involving the five in July 2019. We simply looked at their financial records and were amazed at the low prices of their stocks. As the years have passed, our admiration for these companies has consistently grown. Greg has met many *
Investment Lessons
Trading companies' diversified stakes across industries mirror Berkshire's own model. The sogo shosha structure — diverse equity stakes in supplier and customer companies across multiple industries — creates natural risk diversification while allowing management expertise in specific sector relationships. Berkshire's affinity for this structure reflects a recognition of similar organizational philosophy, even if the specific industries differ.