Sumitomo
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🌱 Idea Evolution & Maturity
How this concept developed over time, tracking its transformation from an early practice to a formalized Berkshire pillar.
The Initial Investment
Berkshire makes a massive, unprecedented bet on Japanese trading companies.
A recognition of the incredible value and stability offered by the Japanese trading houses, characterized by strong cash flows and low valuations.
We are delighted to participate in the future of Japan.
The Silent Compounding
Sumitomo and the others continue to perform exceptionally well, validating the investment thesis.
The investment proves that great value can be found outside the US when the fundamentals are incredibly strong.
The five Japanese trading companies continue to be excellent investments.
The Stake Increase
Berkshire commits further capital, treating the Japanese trading houses almost as permanent holdings.
Sumitomo is recognized as a global powerhouse with a business model that closely resembles Berkshire's own decentralized structure.
These are companies we expect to own for decades.
The Partnership Model
Sumitomo is fully integrated into Berkshire's long-term 'permanent' equity portfolio.
The Japanese trading house model is the ultimate example of sensible diversification and shareholder-friendly capital return.
The Japanese trading companies are treating us very well as partners.
📚 Historical Mentions & Citations (3)
Click a reference document below to expand and read the exact paragraph(s) containing this concept in the archive.
📜2023 LetterReference Only▼
Mentioned in this document.
📜2024 LetterReference Only▼
Mentioned in this document.
🎙️2024 MeetingReference Only▼
Mentioned in this document.