Warren Buffett Unveils Billion-Dollar Investment in Secretive Company

The secret is out: Warren Buffett's Berkshire Hathaway has finally disclosed a significant investment in the insurance company Chubb, which he had been keeping private since last year.

In a filing with the Securities and Exchange Commission on Wednesday, Berkshire revealed that it purchased nearly 26 million shares of Chubb in the first quarter, totaling around $6.7 billion in value.

Buffett's company kept its stake in Chubb under wraps while it was being built, asking the SEC for "confidential treatment" in filings.

Chubb, an insurance company with operations in 54 countries, gained attention in March for providing President Donald Trump with a nearly $92 million appeal bond in E. Jean Carroll's defamation lawsuit.

Buffett, the well-known CEO of Berkshire Hathaway, is known for his successful investing skills. Many investors follow his portfolio decisions closely. One such decision was Berkshire Hathaway's investment in Chubb. After the market closed on Wednesday, the stock price of Chubb surged by over 8%.

Warren Buffett (L), CEO of Berkshire Hathaway, and Vice Chairman Charlie Munger attend the 2019 annual shareholders meeting in Omaha, Nebraska, May 3, 2019.

Warren Buffett (L), CEO of Berkshire Hathaway, and Vice Chairman Charlie Munger attend the 2019 annual shareholders meeting in Omaha, Nebraska, May 3, 2019.

Johannes Eisele/AFP/Getty Images

Related article

Warren Buffett holds first Berkshire Hathaway meeting without Charlie Munger

Buffett is no stranger to investing in insurance companies, with Geico, National Indemnity, and General Re all being subsidiaries of Berkshire Hathaway.

The recent investment in Chubb is in line with Berkshire Hathaway's investment approach. They have been increasing their investments in financial companies such as Ally Financial, American Express, and Bank of America, while reducing their investments in consumer products.

In February, Berkshire revealed that it had sold 10 million shares of Apple in the first quarter of the year, but Apple is still Berkshire's biggest investment. Additionally, Berkshire sold 80 million shares of printer company HP in the last quarter of 2023, decreasing its holdings by 78%.

CNN’s Nicole Goodkind helped with the reporting.

Editor's P/S:

Warren Buffett's latest investment in Chubb, an insurance giant, has sent ripples through the financial world. Buffett's decision to disclose this significant investment, after keeping it under wraps for months, highlights his confidence in the company and its long-term prospects. Chubb's involvement in providing an appeal bond for President Trump has also garnered attention, raising questions about the potential political implications of Berkshire Hathaway's investment.

Buffett's track record as a successful investor makes his portfolio decisions closely watched by many investors. The recent increase in Berkshire Hathaway's investments in financial companies, coupled with the reduction in consumer products holdings, reflects the company's evolving investment strategy. While the sale of Apple shares may indicate a shift in priorities, Apple remains Berkshire's largest investment. The sale of HP shares demonstrates Buffett's willingness to adjust his portfolio based on changing market conditions and his belief in undervalued companies.