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Key Takeaways

• Berkshire Hathaway raised its Mitsubishi stake to 10.23%, deepening its Japan expansion
• Warren Buffett ruled out a CSX Corporation acquisition despite speculation
• Berkshire Hathaway and CSX Corporation formed a new coast-to-coast freight partnership
• Berkshire Hathaway continued to sit on record $344 billion cash amid valuation concerns
• The leadership transition to Greg Abel remained in focus for investors

Berkshire Hathaway Inc. (BRK-A) closed at $755,280.00 on Aug. 29, up 0.77%, marking a steady gain as Warren Buffett’s conglomerate expanded its reach in Japan while securing a new U.S. freight rail partnership. The company’s Q2 2025 results showed cautious capital allocation, but investors remain focused on its $344 billion cash position and succession planning.
 

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Mitsubishi Stake Raised to 10.23%

On Thursday, Mitsubishi Corp. confirmed Berkshire Hathaway increased its stake to 10.23%, up from 9.74% in March. The purchase, made through Berkshire’s insurance arm National Indemnity Company, underscores Buffett’s confidence in Japan’s trading houses.

Warren Buffett’s Berkshire Hathaway boosted its stakes in Mitsubishi Corp. and Mitsui & Co., underscoring confidence in Japan’s trading houses.

Berkshire raised its Mitsubishi holding to 10.23% from 9.74% in March, while also increasing its stake in Mitsui. pic.twitter.com/Qj7gfnN89F

— OutSmarting Markets (@itradeph) August 28, 2025

The investment is part of Berkshire’s broader Japan strategy, with holdings across Mitsui, Itochu, Sumitomo, Marubeni, and Mitsubishi. Collectively, these firms dominate Japan’s global trade networks in energy, metals, and food. Berkshire’s strategy leverages corporate governance reforms and favorable yen-denominated debt, with projected $812 million in annual dividends against $135 million in interest costs.

Rail Partnership Without Acquisition

Buffett put an end to speculation around a CSX Corporation acquisition after meeting privately with CEO Joseph Hinrichs on Aug. 3. While Berkshire ruled out a bid, its BNSF unit and CSX Corporation quickly unveiled a new coast-to-coast freight partnership.

The move calmed merger rumors sparked by Union Pacific’s $85 billion bid for Norfolk Southern. Still, news of no Berkshire-CSX deal sent CSX Corporation shares down 5%, while Union Pacific and Norfolk Southern also slipped. Berkshire’s own shares dipped slightly but recovered alongside the broader rail announcement.

Cash Pile, Valuation, and Leadership Transition

Berkshire’s Q2 results highlighted net income pressure and slowing insurance profits. Yet the company now holds $344 billion in cash, its largest ever. With valuations running high, Berkshire has continued to sell more stock than it buys, frustrating some investors eager for a large-scale acquisition.

The leadership transition has remained a central theme. Warren Buffett, at 95, continues as Chairman but has been steadily elevating Greg Abel, the heir apparent. Abel’s presence at the CSX Corporation meeting signals his growing influence over operational strategy. Investors are keen to see how much of Buffett’s disciplined approach Abel will maintain post-handover.

Bell Labs Acquisition Expands Subsidiary Network

Beyond Japan and rail, Berkshire quietly added Bell Laboratories, a Wisconsin-based rodent-control company, to its roster of subsidiaries in July. The acquisition reflects Berkshire’s preference for profitable, niche operators that deliver steady returns.

Valuation Outlook and Stock Performance

Analysts have remained split on valuation. Simply Wall St estimates Berkshire could be undervalued by up to 30%, with a fair value range between $577,396 and $1.06 million per share.

Performance has been mixed relative to benchmarks:

• Year-to-date return: +10.92% vs. the S&P 500’s +9.84%
• One-year return: +7.54% vs. the S&P 500’s +15.53%
• Five-year return: +130.67%, strongly outperforming the S&P 500’s +84.16%

Despite short-term concerns, Berkshire’s long-term compounding has remained a defining feature, with its diversified bets across Japanese trading houses, rail partnerships, and niche acquisitions positioning it for steady global growth.

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