Billionaire investor Warren Buffett is famous for capitalising on volatile market conditions whenever he finds wonderful businesses trading at a discount. It’s a strategy that’s enabled him to outpace the market by a wide margin over his long investing career.
Even in 2025 he’s delivering results. In fact, since the start of the year, the S&P 500’s down 6%. But Buffett’s investment firm, Berkshire Hathaway (NYSE:BRK.B), is up almost 18%!
Be greedy when others are fearful
Lately, the uncertainty in the US stock market has seemingly improved. The global US tariffs announced at the start of April have largely been scaled back along with the rhetoric of President Trump interfering with the US central bank. As such, US stocks have enjoyed a bit of a rebound, rising by almost 11% since the first week of April.
That’s definitely an encouraging sign. Yet, as previously highlighted, the S&P 500 still has some progress to make to recover from last month’s sell-off. Does this present a Buffett-like buying opportunity for long-term investors?
Maybe. The CNN Fear & Greed Index is still pretty low, suggesting that a lot of investors are still in panic mode. And to be fair, there is still cause for concern. The 90-day larger tariff pause will come to an end in July. And the US economic impact of the ongoing 10% tariffs is uncertain. Some even believe it could spark another recession, likely leading to another potential stock market sell-off.
So is Buffett being greedy right now?
Berkshire’s going international
As a public company, Berkshire Hathaway has to submit regulatory filings each quarter revealing which stocks it’s buying and selling. We’ll get an exact picture of what Buffett and his team have been up to later this month when the company files its 13F for the first quarter of 2025.
However, thanks to some additional filings across the ocean in Japan, we know Berkshire’s been buying shares in Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. All five are Japanese conglomerates spanning a variety of industries, from metal production to chemicals and agriculture. And in typical Buffett fashion, all are trading at pretty cheap-looking valuations.
| Company | Price-to-Earnings Ratio | Price-to-Sales Ratio | Price-to-Book |
| Itochu | 11.5 | 0.7 | 1.7 |
| Marubeni | 9.1 | 0.6 | 1.1 |
| Mitsubishi | 10.2 | 0.6 | 1.2 |
| Mitsui | 8.5 | 0.6 | 1.1 |
| Sumitomo | 10.6 | 0.6 | 0.9 |
Reading between the lines
Buffett hasn’t explicitly stated he’s avoiding US stocks. Yet his actions certainly suggest it’s not quite time to be greedy. Instead, international shares could offer far better value for investors right now, even as US stocks recover.
Blindly following a famous investor’s footsteps isn’t always a sensible idea. Investing in Japanese stocks exposes investors to new risks, including currency exchange fluctuations and a different regulatory environment.
However, that doesn’t mean they’re not worth closer inspection. And if there’s value to be had in Japan, then other markets, like the UK, could also be worth exploring deeper. Especially since the London Stock Exchange is home to plenty of stocks trading at similar multiples.
