Warren Buffett’s Berkshire Hathaway has been secretly investing in a company since last year, and on Wednesday, May 15, the company finally revealed its mystery.
Berkshire Hathaway disclosed in its first quarter investment report filed with the U.S. Securities and Exchange Commission (SEC) on Wednesday that it acquired nearly 26 million shares of the insurance company Chubb, valued at approximately $6.7 billion.
Buffett’s company has been secretive about increasing its stake, requesting “confidential treatment” from the SEC in previous filings.
Chubb’s insurance business spans 54 countries. In March this year, the company made headlines by paying nearly $92 million in an appeal bond for former President Trump in a defamation lawsuit brought by E. Jean Carroll.
Buffett, the Chief Executive Officer of Berkshire Hathaway and a renowned investor, has a highly sought-after investment portfolio. Berkshire Hathaway’s holdings in Chubb are no exception, with Chubb’s stock price surging over 8% in after-hours trading on Wednesday.
Buffett’s bet on Chubb falls within his familiar territory, as Geico, National Indemnity, and General Re, all insurance companies, are subsidiaries of Berkshire Hathaway.
Berkshire Hathaway is a conglomerate with a market value of $862 billion, owning dozens of businesses including BNSF Railway, Geico auto insurance, and various industrial and retail ventures like Dairy Queen and Fruit of the Loom.
The conglomerate also holds over $300 billion in stocks, with nearly half in Apple stocks.
According to CNN, the investment in Chubb highlights Berkshire Hathaway’s investment strategy over the past few months. The company appears to have increased investments in financial firms like Ally Financial, American Express, and Bank of America while cutting back on consumer goods investments.
Earlier this year, Berkshire Hathaway revealed that it sold 10 million shares of Apple stock in the first three months of the year. However, Apple remains the company’s largest investment. In the fourth quarter of 2023, the company also sold 80 million shares of printer company HP, reducing its stake by 78%.