Berkshire Hathaway Chief Executive Officer Greg Abel said the rise in Japan’s yields has not affected the large Japanese trading companies in which the holding company invests.
Appearing on CNBC’s “Squawk Box” on Wednesday, Abel said high yields have been a hot topic in Japan, with Japan’s 10-year bond yield reaching a 30-year high this week, but they are manageable, at least for Japan’s major trading companies.
“At this point, no trading company has taken this as a fundamental issue,” he said. “If you think about it, it’s still relatively modest,” Abel added, noting that while Japan’s yields are at multi-decade highs, they are still low compared to other bond yields around the world.
Japan’s 10-year bond yield is at a multi-decade high, just above 3%, while the U.S. 10-year Treasury yield rose above 4.8% on Tuesday, its highest level in nearly three years.
Japanese government bond yield in 2026
Berkshire Hathaway owns more than 10% of the stock in five of Japan’s largest trading companies. ITOCHU Corporation, Marubeni, mitsubishi, Mitsui & Co. and Sumitomo — everything from energy to consumer goods. Abel’s visit to Tokyo included checking in on those five companies, along with Berkshire’s other investments in the country.
Abel added that he expects Berkshire to continue to raise appropriate yen-denominated debt despite the higher yields.
The investments in both trading companies were initially made with the guarantee that Berkshire would not acquire double-digit stakes in any of the five companies. However, Abel said the company has permission from each trading company to hold more than 10% stake every six years after the initial investment.
Abel reiterated that the company continues to see value in these investments, delivering significant returns for Berkshire, as Berkshire’s stock has grown significantly since its initial investment six years ago.
“This is, firstly, a long-term investment that we intend to hold for many decades, and secondly, we have built very strong relationships with each company and are exploring other opportunities here in Japan and, for that matter, overseas,” he said. “And those are just exceptional arguments.”
