Buffett Reveals $6.7 billion in Secret Stock

Warren Buffett's Berkshire Hathaway revealed a new 6.72 billion dollar stake in insurance company Chubb on Wednesday, confirming months of speculation that Chubb has made a huge new investment.

According to documents submitted to regulatory authorities describing details of Berkshire's US listed shares, as of the same day, Berkshire held 25.92 million Chubb shares as of March 31.

In response to this disclosure of information, Chubb's stock price hit a record high due to overtime trading,6.3% increaseIt was 268.96 dollars.

Stock prices often rise when Berkshire reveals new holdings, and this reflects what investors believe is Mr. Buffett's endorsement.

CFRA Research analyst Kathy Seifert, who is in charge of Berkshire, said in an email, “Chubb is an attractive stock investment for Berkshire. This is because Chubb is developing a business that Berkshire is familiar with, that is, non-life insurance,” he said.

Seifert declined to speculate on whether Berkshire would buy the full amount of Chubb, but said Chubb's focus on commercial specialty coverage and upscale homeowner protection would “fit well” into Berkshire's insurance and reinsurance portfolio.

Berkshire held $189 billion in cash and equivalent at the end of the March fiscal year.

At Berkshire's annual general meeting on 5/4, Mr. Buffett stated that there is a possibility that cash investment amounts will reach 200 billion dollars by June, and compared to high-value stocks, cash seems extremely attractive when considering “what is happening in the world.”

Buffett requests such permission from time to time to prevent investors from piggybacking on Buffett before the purchase is complete.

The investment in Chubb became clear 10 days after Berkshire unexpectedly revealed that it had sold approximately 115 million Apple shares in the first quarter.

As a result, the iPhone manufacturer's holdings declined to 135.4 billion dollars, which is equivalent to 40% of the $335.9 billion stock portfolio.

Apple accounted for the majority of shares worth 20 billion dollars that Berkshire sold in the first quarter.

Berkshire also cut holdings in several other brands, such as Louisiana Pacific and Sirius XM, and withdrew from investing in computer manufacturer HP. Shares purchased in the same quarter were only 2.7 billion dollars.

Wednesday's filing did not specify which investments Mr. Buffett and his portfolio managers Todd Combs and Ted Weschler made.

Buffett, 93, has been running Berkshire since 1965.

The conglomerate also owns Geico Auto Insurance Company, BNSF Railways, Energy and Industrial Companies, and dozens of businesses, including consumer brands such as Benjamin Moore, Dairy Queen, Duracell, Fruit of the Loom, and Sea's Candies.