u/Careful_Economist352 5.0 3 ideas

Berkshire Hathaway has built approximately 10% stakes in five major Japanese trading houses, including Mitsubishi. Corporate governance reforms are forcing these companies to improve ROE and increase buybacks, unlocking massive shareholder value. Long Japanese trading houses as they transition from value traps to capital-efficient compounders. Reversal of corporate governance reforms or a sharp appreciation of the yen hurting export competitiveness.

Hitachi generates ~$65B in revenue, trades at a ~29x P/E, and its Lumada AI platform is growing >50% YoY (now ~31-41% of total revenue). The rapid growth of the high-margin Lumada platform is shifting Hitachi from a low-margin industrial to a recurring software/infrastructure hybrid, driving margin expansion and a valuation re-rating. Hitachi is a lower-risk, steady compounder offering "picks and shovels" exposure to the global AI and semiconductor boom. Macroeconomic slowdown affecting industrial spending, yen currency fluctuations, or failure to achieve the "Inspire 2027" 13-15% margin targets.

SoFi generated $1.0B+ in Q4 2025 revenue (+40% YoY), expects $0.60 EPS in 2026, and CEO Anthony Noto is actively buying shares. A recent short-seller report caused a stock pullback, creating an artificial discount on a fundamentally growing and profitable fintech platform. Buy the dip to capitalize on the valuation gap before the market fully prices in SoFi's 2026 growth targets and margin expansion. The short-seller claims could have underlying merit, or broader macroeconomic headwinds could slow lending and user growth.