The Strategist

Buffett's company reveals its $6.7 billion-investment target

05/17/2024 - 03:01

The enigmatic business whose shares billionaire Warren Buffett's investment firm Berkshire Hathaway unveiled for $6.7 billion turned out to be insurance Chubb Ltd.

Asa Mathat
Asa Mathat
According to CNBC, which cites Berkshire data that are available on the stocks and Exchange Commission (SEC) website, Berkshire has been raising its investment in Chubb for the past two quarters and currently holds 6.44% of the shares of the American corporation that is registered in Switzerland. Chubb is now ranked ninth in terms of share in Berkshire's investment portfolio.

Although the transactions were noted in Berkshire's reports, the company's identity remained undisclosed. Investors tried to determine what equities the company was acquiring, speculating that Buffett's company might have been a large bank. The last time the company employed a similar strategy was when Berkshire purchased Verizon Communications and Chevron Corp. securities in 2020.

The area of expertise for Chubb Ltd. is property and casualty insurance. It was founded in 2016 after Ace Limited paid $29.5 billion to acquire Chubb Corporation, combining the two businesses to form Chubb.