Life after Buffett: Berkshire Hathaway makes new $1.8 billion bet in Japan

Investment company Berkshire Hathaway, entering 2026 without Warren Buffett at the helm, has agreed to buy a large stake in Japanese insurance group Tokio Marine. The deal includes a long-term reinsurance partnership and joint investments around the world. This move confirms the continuity of the company's course in Japan and indicates the growing interest of global investors in the country's insurance sector.

Berkshire Hathaway is investing $1.8 billion to acquire a 2.49% stake in Tokio Marine, Japan's largest property and casualty insurance company, Bloomberg reports. The purchase is structured through Berkshire's subsidiary National Indemnity Company and marks a new stage of the investment company's expansion into the Japanese market.

The deal goes beyond a classic portfolio investment. The parties agreed on a ten-year exclusive cooperation: Tokio Marine receives large-scale reinsurance capacity National Indemnity to ensure further growth, and Berkshire - access to the partner's global insurance portfolio and the possibility of joint participation in mergers and acquisitions (M&A), Bloomberg quotes the words of a representative of Tokio Marine Mitsuhiro Izu.

To protect current shareholders from share dilution, Tokio Marine will use all funds raised from Berkshire - about 287.4 billion yen - to buy back shares. Future purchases of Tokio Marine securities by Berkshire will be made primarily in the open market and will be limited to a 9.9% threshold, which cannot be exceeded without the Japanese company's consent, the insurance giant said.

The significance of the Berkshire Hathaway and Tokio Marine deal is much broader than a private agreement between the two companies: it could increase the investment attractiveness of Japan in the eyes of global capital and could have a positive impact on the country's entire stock market, according to the Financial Times.

According to FactSet, the consensus outlook on Tokio Marine shares is "above market" (Overweight, corresponding to a buy recommendation): out of 12 analysts, nine recommend buying the securities (Buy and Overweight ratings), three recommend holding (Hold), and there are no sell recommendations. The average target price is set by the service at 7222 yen ($45.5), which suggests a potential upside of about 23.3% from the current value.

Consensus rating of Berkshire Hathaway securities is "Hold" (Hold). The average price target is $530.67 per share, up 10.3% from the closing price on March 20.

Berkshire Hathaway has started buying shares of Japanese trading houses - "sogo shoshiya" investment holdings that integrate trading, logistics and financial operations - in 2019. Buffett praised their approach to capital allocation, quality of corporate governance and treatment of shareholders. Berkshire currently controls approximately 10 percent stakes in the five largest sogo shoshiya, including Mitsubishi, Itochu and Mitsui. At the end of December 2025, these stakes were valued at about $35 billion, The Wall Street Journal recalls .

Since January 1, 2026, Berkshire Hathaway has been led by Greg Abel, with legendary investor and billionaire Warren Buffett serving as chairman. In the last quarter under Buffett, Berkshire increased its stake in U.S. oil company Chevron and Swiss insurance company Chubb, and for the first time acquired a stake in The New York Times. At the same time, Berkshire sold 77% of its shares in Amazon and reduced its stake in Apple and Bank of America.

Under Abel's leadership, Berkshire resumed buying back its own shares, something it hadn't done in nearly two years.

This article was AI-translated and verified by a human editor