The Quiet Takeover: How Berkshire's Stake in Mitsubishi Signals a New Era in Japanese Corporate Governance

In the world of corporate governance, numbers often speak louder than words. When National Indemnity Company, Berkshire Hathaway's wholly owned subsidiary, quietly nudged its voting stake in Mitsubishi Corp to 10.23% in 2025, it crossed a symbolic threshold. That 0.5% increase—from 9.74%—was not merely a statistical tweak. It was a declaration of intent, a signal that one of the most storied names in global investing, Warren Buffett's Berkshire Hathaway, is betting on a structural shift in Japan's corporate landscape.

The Strategic Logic of a Minority Stake

Berkshire's approach to Japanese trading houses has always been methodical. Over the past year, it has incrementally increased its holdings in Mitsubishi and its peers, including Itochu, Marubeni, and Mitsui. These companies, often described as “economic ecosystems,” operate across energy, logistics, retail, and technology. Their diversified portfolios and long-term value-creation strategies align with Berkshire's own philosophy of investing in “economic moats” that withstand cyclical volatility.

The 10.23% stake in Mitsubishi is not a majority position, but it is a pivotal one. In Japan, where cross-shareholding and family-controlled conglomerates have historically dominated, a 10% voting stake can tilt the balance of power. It grants National Indemnity a seat at the table for key decisions, from executive appointments to capital allocation. For investors, this raises a critical question: Is Berkshire positioning itself to influence governance reforms that could unlock value in a market long criticized for its opaque decision-making?

Governance as a Catalyst for Value

The implications of this stake are already visible. On the day of the announcement, Mitsubishi's stock rose 2.5%, outperforming broader indices. The market interpreted the move as a vote of confidence—not just in Mitsubishi's business model, but in Japan's broader economic trajectory. With corporate governance reforms gaining momentum under Prime Minister Kishida's administration, foreign investors like Berkshire are likely eyeing opportunities to push for board diversity, shareholder rights, and more transparent financial reporting.

Consider the June 2025 shareholder meeting, where National Indemnity's influence could shape resolutions on executive compensation or dividend policies. If Berkshire leverages its voting power to advocate for higher returns to shareholders or more aggressive capital recycling, it could catalyze a shift in how Japanese conglomerates allocate resources. For years, these firms have been accused of underinvesting in innovation and overprioritizing stability. A governance push from a firm like Berkshire—known for its activist-like patience—could force a reckoning.

A Broader Trend: Global Capital Meets Japanese Resilience

Berkshire's moves are part of a larger pattern. In 2025, it also increased stakes in UnitedHealth Group and adjusted positions in Apple and Bank of America . Yet its focus on Japan is distinct. Buffett has long admired the resilience of Japanese trading houses, comparing them to Berkshire in their ability to navigate macroeconomic turbulence. The current global environment—marked by supply chain fragmentation and energy transitions—only amplifies the appeal of firms like Mitsubishi, which have deep ties to global markets and the agility to pivot.

For investors, the lesson is clear: Governance is no longer a peripheral concern in Japan. It is a lever for value creation. As National Indemnity's stake demonstrates, foreign capital is increasingly willing to pull that lever.

Investment Advice: Look Beyond the Numbers

While the 10.23% stake is a headline-grabber, it is the broader narrative that matters. Investors should monitor how Berkshire's influence translates into concrete governance changes at Mitsubishi and its peers. Key metrics to watch include:
- Dividend yields and share buybacks: A sign of capital efficiency.
- Board composition: Are independent directors being added?
- Strategic partnerships: Does Mitsubishi's global footprint expand in sectors like renewable energy or AI?

For those seeking exposure to this trend, a diversified approach to Japanese conglomerates—coupled with a focus on governance metrics—could yield outsized returns. The market is no longer content with the status quo. And in Japan, where tradition often clashes with innovation, the clash may finally be yielding progress.

In the end, Berkshire's stake in Mitsubishi is more than a bet on a single company. It is a wager on a new era for Japanese corporate governance—one where global capital and local resilience converge to create value in unexpected ways. For investors, the challenge is to recognize these shifts early and position accordingly.