Billionaire Warren Buffett Buys Chubb Insurance Company Shares, Worth This Much

 The share portfolio of billionaire Warren Buffett's investment company Berkshire Hathaway has been revealed again. Berkshire Hathaway revealed a large stake in insurance company Chubb and revealed investments it had hidden since last year.

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Berkshire Hathaway acquired nearly 26 million Chubb shares which is known based on filings with the Securities and Exchange Commission (SEC) in the first quarter of 2024. The acquisition value is USD 6.7 billion or around Rp. 106 .79 trillion (assuming the exchange rate of the United States dollar against the rupiah is around 15,938).

Berkshire Hathaway has shielded the position from the public as it builds its stake and requested “confidential treatment” from the SEC in previous filings. Chubb, an insurance company operating in 54 countries, made headlines in March after it underwrote former United States President Donald Trump's nearly $92 million appeal in a defamation lawsuit filed by E. Jean Carroll.

Berkshire Hathaway CEO Buffett has amassed a legion of investors who copy his portfolio moves. Berkshire Hathaway's stake in Chubb is no exception. Chubb shares jumped more than 8 percent in after-hours trading on Wednesday this week.

Buffett's bet on Chubb is common. Insurance companies Geico, National Indemnity and General Re are all subsidiaries of Berkshire Hathaway.

The investment in Chubb underscores Berkshire Hathaway's investment strategy over the past few months. It appears to have doubled its investments in financial companies such as Ally Financial, American Express and Bank of America while slashing its investments in consumer products.

In February, Berkshire revealed it sold 10 million Apple shares in the first three months of the year, although Apple remains Berkshire's largest investment. Berkshire also sold 80 million shares of printer company HP in the fourth quarter of 2023, reducing its holdings by 78%.

Berkshire Hathaway Cuts Shareholding in Apple

Previously, billionaire Warren Buffett's investment company, Berkshire Hathaway, cut its share ownership in Apple in the first quarter.

In its first quarter financial report, Berkshire Hathaway reportedly cut its shareholding in Apple by around 13 percent. Berkshire Hathaway's ownership in Apple is around USD 135.4 billion, which is equivalent to 790 million shares. Despite the reduction, Apple was still the largest company in Berkshire Hathaway's portfolio at the end of this quarter.

Warren Buffett's investment company has reduced its shareholding in the iPhone manufacturing company for two consecutive quarters. Berkshire Hathaway sold around 10 million Apple shares in the fourth quarter. With this filing, Berkshire sold approximately 116 million Apple shares taking into account changes in Apple's share price.

Answering shareholder questions at Berkshire's annual meeting in Omaha, Buffett said that the sale of Apple shares was carried out for tax reasons following a sizable profit.

Berkshire Hathaway Allegedly Selling Apple Shares

He also implied the sale may be related to his desire to avoid a higher tax bill if rates rise to fund the United States' fiscal deficit. “It didn't bother me at all to write that check. We will do it with a slightly higher percentage at a later date. "I don't think you'll mind the fact that we sold a little bit of Apple stock this year," Buffett said.

Warren Buffett has become a big fan of Apple after his investment managers Ted Weschler and Todd Combs convinced him to buy Apple shares several years ago. Buffett calls the tech giant his second most important business after the Berkshire group of insurance companies.

Many speculate Warren Buffett is reducing Apple shares due to valuation issues. Apple shares have risen 48 percent in 2023 as the large market cap technology stock leads the market rally. At its peak, Apple ballooned Berkshire's stock portfolio and controlled 50 percent of its shares.

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