Warren Buffett's Berkshire Hathaway has become a major shareholder in Mitsui & Co., Ltd. through increased holdings, marking the latest bet by the institution on the continued attractiveness of Japanese trading companies.

According to a statement released by Mitsui & Co., Ltd. on Monday, the American investor has raised its stake to over 10% based on voting rights and may consider further increases.

Buffett first disclosed his holdings in Japan's five major trading houses in 2020. These companies engage in various businesses ranging from liquefied natural gas (LNG) to salmon farming, with their stock prices benefiting from Buffett's backing and outperforming Japan's Topix index.

According to Buffett's annual letter to investors in February, Berkshire Hathaway initially planned to keep its holdings below 10%, but these Japanese companies agreed to "modestly" relax the cap. Berkshire Hathaway's stake in Mitsubishi Corporation has also crossed the 10% threshold.

The diversified operations of these trading companies mean they can better withstand the impact of commodity price fluctuations compared to overseas competitors, while increasing their focus on shareholder returns.

Inflows. Garg added: "The current challenging backdrop may impact this figure, which could potentially put pressure on the current account and the Indian rupee."