Scott Morgan/Reuters
Berkshire Hathaway Chairman Warren Buffett attends the annual Berkshire Shareholder Shopping Day in Omaha, Nebraska, on May 3, 2019.
CNN
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The mystery is over. Warren Buffett’s Berkshire Hathaway has revealed its large stake in the insurance company Chubb, finally disclosing the investment it has kept secret since last year.
Berkshire said in its first-quarter investment filing with the Securities and Exchange Commission on Wednesday that it acquired about 26 million shares of Chubb. This equates to a value of approximately $6.7 billion.
Mr. Buffett’s company has avoided public knowledge of this position while accumulating stock, requesting “confidential treatment” from the SEC in previous filings.
Chubb, an insurance company with operations in 54 countries, made headlines in March for its underwriting of insurance companies. President Donald Trump’s approximately $92 million appellate bond in E. Jean Carroll’s defamation lawsuit.
Buffett, the Berkshire CEO known for his investing talent, has amassed a sizable following of investors who emulate his portfolio moves. Berkshire Hathaway’s Chubb stock is no exception. Chubb stock rose more than 8% in after-hours trading Wednesday.
Mr. Buffett’s bet on Mr. Chubb is familiar territory. IIInsurance companies Geico, National Indemnity, and General Re are all subsidiaries of Berkshire Hathaway.
The Chubb investment highlights Berkshire Hathaway’s investment strategy over the past few months. It appears to be doubling down on investments in financial companies like Ally Financial, American Express and Bank of America, while cutting back on investments in consumer products.
Berkshire said in February that it had sold 10 million Apple shares in the first three months of this year, but Apple remains Berkshire’s biggest investment. Berkshire also sold 80 million shares of printing company HP in the fourth quarter of 2023, reducing its holdings by 78%.
– CNN’s Nicole Goodkind contributed reporting.
