**Berkshire Hathaway Struggles as Japanese Bonds Drop, Buffett Avoids Bitcoin**
Berkshire Hathaway faces major challenges as Japan's bond market falters, threatening Warren Buffett's investments in the country's five major trading houses. Initially, Buffett borrowed at low rates to buy stocks with strong dividends, but rising Japanese bond yields are now eroding profits, and stocks of the trading houses are down 16-20% in 2025. Trade tensions and a strong yen add further pressure.
Despite these risks, Buffett remains committed to his strategy, not selling Japanese holdings or adjusting his bond approach. Meanwhile, Bitcoin has surged to record highs, reaching \$111,000, with institutional interest growing. However, Buffett, who sold Berkshire's only crypto exposure in Q1 2025, continues to dismiss Bitcoin, sticking to his belief in traditional stocks.
As the crypto market thrives, Berkshire has bolstered its cash reserves, but Buffett’s focus remains on long-term stock investments over alternatives like real estate or Bitcoin.