Image source: The Motley Fool
As the world’s most famous value investor, it’s no surprise that Warren Buffett has been a net seller of stocks in 2025. After all, valuations in the US are getting pretty stretched, and it’s becoming increasingly harder to find bargains or even fair prices for fantastic companies.
However, even with Berkshire Hathaway‘s cash pile now sitting above $380bn, Buffett and his team have still been doing some shopping. In fact, they’ve just recently bought another 6.6m shares in Mitsui & Co (OTC:MITSY), increasing Berkshire’s stake to over 10%.
That makes Buffett’s investment firm one of the largest shareholders in the world. And with Mitsui shares already up 210% in the last five years, has Buffett spotted more growth on the horizon?
Opportunities in Japan
With US stocks getting too expensive for the Oracle of Omaha, it seems he’s been shifting his attention to international markets. Specifically, Japan. And in Japan, Mitsui is almost a household name as one of the country’s five largest trading houses, dating back to 1876.
But here in the UK, few investors have likely heard of it. So, as a quick crash course, Mitsui acts as a middleman connecting suppliers with customers across multiple industries. This includes products like oil & gas for energy providers, metals for manufacturers, chemicals, foods, and even lifestyle products.
It’s also involved in the logistical side of things, arranging transportation as well as helping finance certain business deals.
Put simply, Mitsui builds and maintains critical supply chains in and outside of Japan. And with a long track record of prudent management, smart capital allocation, and a competitive moat, it’s easy to see why Buffett has taken an interest.
A stock worth considering?
With such a spectacular track record for identifying value, there’s a large group of investors that follow each of Buffett’s moves. However, this strategy hasn’t always worked out. After all, even someone as smart as this billionaire investor has made plenty of errors over the years.
That’s why it’s crucial never to just blindly follow anyone into making an investment. So, what’s the bull and bear case for Mitsui?
The company has a fairly diverse operational base spanning multiple sectors, providing a rare combination of resilience and growth even during economic downturns. But in particular, Mitsui seems to have a strong position in the liquefied natural gas (LNG) market – a commodity that’s seeing a significant rise in demand from countries in Asia as they move away from coal for generating cleaner electricity.
However, this tailwind could also backfire. Over or undersupply of LNG could trigger massive commodity price swings, potentially harming Mitsui’s earnings.
The rest of its supply chain portfolio provides some protection in these scenarios. But if demand for commodities in general from major economies like China drops due to economic slowdowns, this diversification may prove insufficient.
The bottom line
Mitsui is a complicated business. But there definitely seems to be an interesting opportunity here that’s worth exploring further, in my opinion. And for investors less keen on buying international shares, the London Stock Exchange also has its own collection of Mitsui-like enterprises that I’ve got my eye on.
