Did Warren Buffett really fly to Japan to meet with the CEOs of all five companies before investing? What did they discuss?

Buffett's Investment in the Five Major Trading CompaniesWarren BuffettInvestment DecisionJapanese CompaniesCEO MeetingDue Diligence
Created At: 8/6/2025Updated At: 8/17/2025
Answer (1)

Analysis of Due Diligence Before Buffett's Investment in Japan's Five Major Trading Companies

1. Did Buffett Fly to Japan to Meet the CEOs of the Five Companies?

No, Warren Buffett did not personally fly to Japan to meet the CEOs of the five major trading companies (Itochu, Marubeni, Mitsubishi Corporation, Mitsui & Co., and Sumitomo Corporation) before investing in them in 2020. His investment decision was primarily based on remote research and due diligence, not face-to-face meetings. Specifically:

  • Investment Context: On August 30, 2020 (Buffett’s 90th birthday), Berkshire Hathaway announced the purchase of approximately 5% stakes in these companies. At the height of the COVID-19 pandemic, international travel was restricted. Buffett stated that he made the decision by reviewing the companies’ annual reports, financial statements, and historical data.
  • Decision Process: Buffett emphasized that his investment philosophy relies on analyzing "moats," long-term value, and undervalued assets—not personal meetings. He noted in interviews that these Japanese trading houses’ business models resembled Berkshire’s diversified structure, and their stocks were undervalued, eliminating the need for on-site visits.
  • Subsequent Visit: After the investment, Buffett visited Japan for the first time in April 2023 and met with the CEOs. This trip aimed to strengthen relationships, discuss future collaborations, and announce plans to increase Berkshire’s stakes (now raised to ~8-9%).

2. What Did They Discuss?

Since no meeting occurred before the investment, "what they discussed" refers to conversations during Buffett’s 2023 visit. Based on his media interviews (e.g., CNBC), Berkshire shareholder letters, and related reports, key topics included:

  • Business & Strategy: Buffett and the CEOs discussed the trading houses’ diversified operations across energy, metals, food, textiles, and infrastructure. They shared strategies for navigating global challenges like inflation and geopolitical risks.
  • Investment Philosophy & Long-Term Partnership: Buffett highlighted his "permanent holding" approach, praising the companies’ efficient management and shareholder-friendly policies (e.g., dividends and buybacks). He described them as the "Japanese version of Berkshire" and explored potential joint-investment opportunities.
  • Plans to Increase Stakes: Buffett revealed intentions to raise holdings to 9.9% (Japan’s regulatory cap) and sought the CEOs’ outlooks to confirm long-term value.
  • Other Topics: Discussions covered Japan’s economy, culture, and global market trends. Buffett commended Japanese companies for low debt and high efficiency, while exchanging lighthearted anecdotes with the CEOs.

Summary & Insights

Buffett’s case demonstrates that due diligence doesn’t require in-person interaction; data-driven analysis can enable sound decisions. It reflects his value-investing principles: focusing on fundamentals over short-term events. For specific financial data or updates, refer to Berkshire Hathaway’s annual reports.

Created At: 08-06 12:07:22Updated At: 08-09 22:02:31