The investment in Chubb underscores Berkshire Hathaway’s strategy over the past several months, seemingly doubling down on financial companies like Ally Financial, American Express and Bank of America while trimming its investments in consumer products.

In February, Berkshire disclosed that it sold off 10 million shares of Apple in the first three months of the year, though 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%.

Tens of thousands of Berkshire Hathaway shareholders and Warren Buffett fans flocked to Nebraska recently to see the ‘Oracle of Omaha’ speak in person, and perhaps pick up on some of his planned investments. This meeting was also the first time Buffett appeared without his longtime business partner and friend Charlie Munger, who died in November.

Buffett wrote at the time that Munger was the “architect” behind the conglomerate they built together.

“In the physical world, great buildings are linked to their architect, while those who had poured the concrete or installed the windows are soon forgotten,” he wrote. “Berkshire has become a great company. Though I have long been in charge of the construction crew; Charlie should forever be credited with being the architect.”

Munger’s passing has brought up the question of succession at Berkshire. Greg Abel, the expected successor to Buffett who runs Berkshire’s noninsurance operations, has been named, with Buffett’s approval.

“I don’t have a second choice. I mean it is that tough to find. But I have also seen Greg in action and I feel 100% comfortable. Greg is inheriting a good business and I think he’ll make it better.”

It will be interesting to see where Berkshire Hathaway heads in the next few years, but for now, Chubb’s shareholders are likely overjoyed at getting the Oracle of Omaha’s public nod.

[source:cnn]