Core Viewpoint - Berkshire Hathaway has increased its investments in Japan, particularly in Mitsubishi Corp. and Mitsui & Co., leading to a rise in shares across the sector [1][3]. Group 1: Investment Details - A Berkshire unit raised its voting rights stake in Mitsubishi to 10.23%, up from 9.74% in March [2]. - Mitsui confirmed that Berkshire also increased its holding, although it remains below 10% [2]. - As of March, Berkshire owned 9.82% of Mitsui shares [2]. Group 2: Market Reaction - Shares in Japanese trading houses experienced a rally following the announcement of Berkshire's increased stakes [3]. - Analysts noted that Berkshire's continued ownership has drawn renewed attention to Japan's trading firms, which are becoming more proactive in returning value to shareholders [5]. Group 3: Strategic Context - Warren Buffett has been gradually building positions in Japan's five largest trading firms since 2020, which include Mitsubishi, Mitsui, Marubeni, Itochu, and Sumitomo [4]. - These conglomerates operate across various industries, including oil and gas production and convenience stores [4]. Group 4: Regulatory Changes - Berkshire initially aimed to keep its holdings below 10%, but Japanese companies have agreed to "moderately" relax this limit [6]. Group 5: Economic Indicators - Japan's GDP grew by 0.3% sequentially in Q2 of 2025, surpassing market expectations of 0.1% and marking the fifth consecutive quarterly expansion [7]. Group 6: ETF Performance - Japan-focused ETFs have outperformed the SPDR S&P 500 ETF over the past month, indicating strong market interest [8]. - Despite recent gains, Japanese stocks remain attractively valued compared to U.S. stocks, with various ETFs showing lower P/E ratios than the S&P 500 [9].