One of the pillars of this new cycle has been a transformation in corporate governance.
Japanese companies—traditionally conservative—are now prioritizing return on capital, increasing dividends, and accelerating share buybacks.

The result: more attractive valuations and a market that is regaining competitiveness against other developed economies.

In this context, Warren Buffett has taken a leading position.
Over the past year, Berkshire Hathaway has increased its stakes in Japan’s five major trading houses: Mitsubishi, Mitsui, Itochu, Marubeni, and Sumitomo.

Buffett has noted that valuations remain compelling and that these conglomerates have diversified business models, solid cash flows, and consistent shareholder returns through dividends and buybacks.

His view aligns with the idea that Japan represents an undervalued opportunity today:
a large, liquid market with global companies undergoing meaningful structural change.

The current rally doesn’t seem to be just another cyclical rebound, but rather the reflection of a market that—after decades of stagnation—is finally showing solid fundamentals and international recognition.

At Bendio, we share this perspective.
We currently maintain exposure to Japan through the iShares MSCI Japan ETF (EWJ), an efficient and low-cost vehicle that captures the country’s market evolution.

The fund includes leading companies such as Toyota, Sony, Mitsubishi UFJ Financial, Hitachi, and Sumitomo Mitsui Financial, offering diversification, efficiency, and access to Japan’s most representative names.