Greg Abel, CEO of Berkshire Hathaway since January 1, 2026, has confirmed that raising yen-denominated debt in Japan remains an appropriate strategy for the conglomerate. Berkshire issued yen bonds worth approximately 272 billion yen, or $1.7 billion, in April 2026, bringing its total outstanding yen-denominated debt past the 1.5 trillion yen mark with an average interest cost of around 1.2%. The group now holds approximately 10% stakes in Japan’s five major trading houses, Itochu, Mitsubishi, Mitsui, Sumitomo, and Marubeni, as well as a 2.49% stake in Tokio Marine Holdings for $1.8 billion. The strategy relies on a favorable spread: borrowing at low cost in yen and receiving dividends that exceed those borrowing costs. Risks remain if the Bank of Japan shifts its ultra-loose monetary policy, which could compress this spread.
Source: Read the original article
