By tapping the Japanese debt market, the company is effectively managing currency risk while taking advantage of the country\u2019s low borrowing costs. This approach enables Berkshire to secure funding at more attractive rates than in the United States and deploy the capital into higher-yielding investment opportunities.<\/p>\n
The move likely signals confidence in Japanese assets, building on Berkshire\u2019s existing investments in major Japanese trading houses. Berkshire has been steadily increasing its stakes in Japan\u2019s five companies \u2014 Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo \u2014 since initiating investment in July 2019. By the end of 2025, Berkshire\u2019s aggregate investment cost was $15.4 billion, while the market value of its stakes had grown to $35.4 billion.<\/p>\n
Per the 2025 annual report of Berkshire Hathaway, the company has borrowed an amount roughly equivalent to the yen invested (cost basis) in Japan, at an average cost of 1.2%, with a weighted-average life of approximately 5.75 years.\u00a0<\/p>\n
Borrowing in yen creates a natural hedge when invested in yen assets, reducing currency risk by aligning assets and liabilities\u2014consistent with Berkshire\u2019s conservative approach. It also signals potential for greater exposure to Japan, where valuations remain attractive and governance is improving. The move further reflects Berkshire\u2019s strong credit quality, allowing access to global funding at favorable rates.<\/p>\n
What About Other Insurers?<\/p>\n
MetLife (MET Quick QuoteMET<\/a> – Free Report<\/a>) , a major U.S. insurer, has built a strong, long-term presence in Japan. MetLife\u2019s most transformative move was acquiring Alico in 2010. It positioned MetLife as a leading force in Japan\u2019s life insurance sector and reinforced its strategic growth ambitions in Asia.<\/p>\n Aflac Incorporated (AFL Quick QuoteAFL<\/a> – Free Report<\/a>) established Aflac Ventures Japan in 2019 to invest in cancer care, HealthTech, and InsurTech startups, fostering innovation for Aflac Life Insurance Japan. In 2018, Aflac converted its Japanese branch into a subsidiary. Today, Japan remains a vital revenue driver, underscoring Aflac\u2019s strategic commitment.<\/p>\n BRK.B\u2019s Price Performance<\/p>\n Shares of BRK.B have lost 4.9% year to date, underperforming the industry<\/a>.<\/p>\n BRK.B\u2019s Expensive Valuation<\/p>\n BRK.B trades at a price-to-book value ratio of 1.42, above the industry average of 1.40. It carries a Value Score <\/a>of D.<\/p>\n Estimate Movement for BRK.B\u00a0<\/p>\n The Zacks Consensus Estimate for BRK.B\u2019s first-quarter 2026 EPS has witnessed no movement over the last 30 days, while that for the second quarter moved 6.1% south in the same time frame. The consensus estimate for full-year 2026 has moved 2 cents north, while that for 2027 has moved 4 cents south over the last 30 days.\u00a0 The consensus estimates for BRK.B\u2019s 2026 and 2027 revenues indicate year-over-year increases. While the consensus estimate for BRK.B\u2019s 2025 EPS indicates a decline, the same for 2026 suggests an increase.\u00a0\u00a0<\/p>\n BRK.B stock currently carries a Zacks Rank #5 (Strong Sell).\u00a0<\/p>\n![\"Zacks](\"https:\/\/www.europesays.com\/japan\/wp-content\/uploads\/2026\/04\/156896.jpg\"\/)
Image Source: Zacks Investment Research<\/p>\n![\"Zacks](\"https:\/\/www.europesays.com\/japan\/wp-content\/uploads\/2026\/04\/156895.jpg\"\/)
Image Source: Zacks Investment Research<\/p>\n
\u00a0<\/p>\n![\"Zacks](\"https:\/\/www.europesays.com\/japan\/wp-content\/uploads\/2026\/04\/156897.jpg\"\/)
Image Source: Zacks Investment Research<\/p>\n