Warren Buffett’s Berkshire Hathaway has revealed a new $7 billion stake in insurer Chubb, as disclosed in a quarterly filing with the Securities and Exchange Commission. The investment was built over the past nine months, with Berkshire holding nearly 26 million Chubb shares, representing a 6.4% stake in the company. Following the news, Chubb shares surged more than 7% in after-hours trading to $271.82. Investors closely monitor Berkshire’s portfolio due to Buffett’s successful track record, leading to speculation that Berkshire may consider acquiring all of Chubb.
CFRA Research analyst Cathy Seifert noted that Chubb is now one of the top 10 holdings in Berkshire’s portfolio. While it is unclear whether Buffett or one of Berkshire’s other investment managers made the Chubb investment, Buffett typically handles stakes worth $1 billion or more. At Berkshire’s annual shareholders meeting, Buffett revealed that the company sold a portion of its Apple shares but still holds a significant stake in the tech giant, expecting it to remain a long-term investment. Additionally, Berkshire sold off its Paramount Global investment at a loss after the first quarter.
Berkshire has been regularly updating its stock holdings, including purchases of Liberty Media stock, where it holds over 10% of the shares. The company holds 70 million Liberty Media Series C shares and more than 35 million Liberty Media Series A shares, which track shares of Sirius XM Holdings. The filing also revealed that Berkshire sold all of its remaining 22.8 million HP Inc. shares and trimmed its stakes in Chevron and Louisiana Pacific stocks. These changes reflect Berkshire’s strategic moves in its investment portfolio during the quarter.
While Berkshire’s core businesses include insurers like Geico and General Reinsurance, the investment in Chubb adds another insurance company to its portfolio. The complementary business mix between Berkshire and Chubb could lead to speculation about potential future acquisitions. The filing did not specify whether Buffett personally made the investment, but given his track record and history of handling significant stakes, it is likely that he played a key role in this decision. Overall, Berkshire’s investment in Chubb underscores its ongoing strategy of diversifying and optimizing its investment portfolio for long-term growth.
The market response to Berkshire’s investment in Chubb was positive, with Chubb shares experiencing a notable increase in value following the disclosure. The strategic moves made by Berkshire, including trimming its stake in certain companies and focusing on new opportunities like Chubb, demonstrate the company’s proactive approach to managing its investment portfolio. As Berkshire continues to navigate market conditions and evaluate potential opportunities, investors will be closely monitoring its next moves and anticipating how these decisions will impact the company’s overall performance and growth trajectory in the future.
