May 16, 2024 07:28 AM IST
Berkshire revealed that it had acquired nearly 26 million shares of Chubb which are approximately $6.7 billion. What we know
Warren Buffett’s Berkshire Hathaway disclosed that it has a major stake in the insurance company Chubb. The company has hid the investment since last year. Berkshire revealed that it had acquired nearly 26 million shares of Chubb which are approximately $6.7 billion. The company was building the stake and requested “confidential treatment” from the SEC in previous filings, it said. Chubb is an insurance business which operates in 54 countries. The company made headlines in March after it underwrote former US president Donald Trump’s nearly $92 million appeal bond in defamation lawsuit by E. Jean Carroll’s.
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Following the announcement, Warren Buffet’s stock in Chubb jumped by more than 8%. His company also has subsidiaries like iInsurance companies Geico, National Indemnity and General Re.
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In February this year, Berkshire disclosed that it sold off 10 million shares of Apple. Although Apple remains Berkshire’s largest investment. Berkshire also sold 80 million shares of printer company HP in 2023, reducing its holdings by 78%.
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CFRA Research analyst Cathy Seifert said in a note to investors that Chubb is now one of the 10 biggest holdings in Berkshire’s portfolio. Cathy Seifert wrote, “We can’t speculate whether Berkshire would pursue an outright acquisition of CB, but we note their business mixes are highly complementary.”
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This comes as Warren Buffett reflected on Indian stock market and said, “I am sure there are loads of opportunities in countries like India. The question, however, is whether we have any advantage or insights into those businesses in India, or any contacts that will make possible transactions that Berkshire would like to participate in. That is something a more energetic management at Berkshire could pursue.
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