$6.7 billion invested: Warren Buffett strikes secretly

6.7 billion dollars invested
Warren Buffett strikes secretly

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It is becoming increasingly difficult for investment legend Warren Buffett to find attractive companies. His huge cash reserves continue to swell. But he quietly acquired a stake in one of the world’s largest insurers.

Warren Buffett’s investment firm has bought into US insurer Chubb. The “Financial Times” reports this, citing documents published by the US Securities and Exchange Commission (SEC). Berkshire Hathaway has acquired shares worth $6.7 billion since last year.

As a rule, large investors in the USA have to disclose when investments exceed the $100 million threshold. But Berkshire was granted an exemption by the SEC. The reason for this is not known. But company stock prices almost always rise significantly as soon as Berkshire announces the new investment. Investors are convinced that a Buffett investment is a stamp of approval. Immediately after the stake in Chubb was made public, the price shot up sharply.

Chubb is one of the world’s largest insurers and is currently valued at $103 billion on the stock market. Chubb’s boss Evan Greenberg was among a group of top US executives who met with Chinese President Xi Jinping at an economic forum in Beijing in March.

Buffett has been focused on financial services for many years. His investment conglomerate has interests in, among others, the car insurer Geico, the credit card provider Mastercard and the Bank of America. The 93-year-old is one of the most successful investors in history. Recently, however, it has become increasingly difficult for him to find suitable companies. At the end of the first quarter, Berkshire’s cash reserves had swelled to $189 billion. At the annual shareholder meeting in early May, Buffett emphasized that he would like to invest the money – “but we will only spend it on something that has low risk and can make us a lot of money.”

At the end of the current quarter, reserves would break the $200 billion mark, according to Buffett. The bottom line is that Berkshire recently earned a lot more money from sales than it invested. Simply reducing its stake in Apple brought Berkshire an estimated $40 billion.

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