Warren Buffett Discloses Multi-Billion Dollar Stock Purchase

Warren Buffett’s Berkshire Hathaway has finally revealed its mysterious multi-million-dollar investment in an anonymous company — and it turns out to be a $6.7 billion stake in insurance giant Chubb. The revelation came through a filing with the U.S. Securities and Exchange Commission on Wednesday, putting an end to months of speculation.

Chubb, which was acquired by Ace Limited for $29.5 billion in 2016, has been experiencing strong financial performance, with a 13.3% increase in net income and a 20.3% rise in core operating income in the first quarter of 2024. CEO Evan G. Greenberg attributed this success to double-digit premium revenue growth across the globe, particularly in commercial and consumer P&C and Asia life businesses.

Berkshire Hathaway’s investment in Chubb was kept confidential for two quarters, following a pattern of secrecy the conglomerate has employed in the past when purchasing stock in companies like Chevron and Verizon. This move is in line with Buffett’s investment strategy, which has seen Berkshire Hathaway hold major stakes in insurance companies like Geico, National Indemnity, and Gen Re.

At the recent annual shareholder meeting in Omaha, Nebraska, Buffett admitted to selling off the company’s entire stake in Paramount at a loss, taking full responsibility for the decision. Despite this setback, Chubb’s stock saw a significant increase of over 4.3% in a 24-hour period and over 32% in a one-year period following Berkshire Hathaway’s investment. With Buffett’s seal of approval, it seems that Chubb is poised for continued success in the insurance industry.