Warren Buffett’s Berkshire Hathaway revealed a new $6.72 billion investment in insurance firm Chubb in a regulatory filing on Wednesday. His revelation sent the company’s stock to an all-time high.
Berkshire owned 25.92 million shares in Chubb as of March 31, according to a regulatory filing that details Berkshire’s U.S.-listed holdings as of that date.
The stock has advanced over 16% this year, ahead of Berkshire’s disclosure.
“Chubb is an attractive equity investment for Berkshire because it operates in a business Berkshire knows well: property-casualty insurance,” Cathy Seifert, a CFRA Research analyst who covers Berkshire, said in an email reviewed by Reuters.
Berkshire reduced its stake in Apple by about 22% to $135 billion as of March 31, a sale that resulted in an $11.2 billion after-tax gain on the investment. Buffett said that he expects Apple to remain Berkshire’s largest stock investment for the foreseeable future.
The company began buying Chubb stock in the third quarter of last year and obtained permission from the Securities and Exchange Commission (SEC) to temporarily keep its purchases confidential.
Berkshire has in recent years obtained similar SEC permission for its investment in Chevron and former investments in ExxonMobil, IBM and Verizon.
Buffett had suggested at Berkshire’s annual meeting on May 4 that the company’s cash stake could rise to $200 billion by June.
