Omaha, Nebraska – Warren Buffett’s Berkshire Hathaway made a significant $6.72 billion investment in insurance firm Chubb, according to a recent regulatory filing. This new investment led Chubb’s stock to surge to an all-time high. Berkshire Hathaway’s stake in Chubb, totaling 25.92 million shares as of March 31, reflects the company’s confidence in the insurance industry.
The rise in Chubb’s stock price after Berkshire Hathaway’s disclosure is consistent with the trend of stocks increasing when Buffett reveals them as new holdings in his portfolio. Analysts view Chubb as an attractive equity investment for Berkshire due to its operation in the property-casualty insurance sector, a business Berkshire is familiar with.
The filing also indicated that Berkshire ended March with a record-high cash stockpile of $189 billion. Buffett had previously hinted that this cash stake could increase to $200 billion, emphasizing the attractiveness of holding cash over high-priced stocks in the current uncertain global landscape.
Berkshire Hathaway’s reduction in its stake in tech giant Apple by 22% to $135 billion was accompanied by an $11.2 billion after-tax gain on the investment. Despite paring back its stake in Apple, Buffett affirmed that Apple will remain Berkshire’s largest stock investment going forward.
Buffett’s firm chose to keep its Chubb stock purchases confidential initially, obtaining permission from the Securities and Exchange Commission (SEC) to delay public disclosure to prevent other investors from piggybacking on the purchases. This tactic aligns with Berkshire’s past strategies for investments in other companies like Chevron, ExxonMobil, IBM, and Verizon.
At 93 years old, Buffett has been at the helm of Berkshire Hathaway since 1965 and recently discussed succession plans at the company’s annual meeting. Berkshire’s investment decisions, whether made by Buffett himself or portfolio managers, continue to shape the company’s portfolio and influence the market.