Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), itself a dealer of reinsurance, reduced its shareholding of Munich Re (XTER:MUV2), the largest reinsurer in the world, last week after commenting that he and his associates saw trouble ahead for the industry. The sell represents a large shift of focus for an investor for whom insurance is a forte.
Buffett cut back the stake from around 12% to 9.7% of the company, below the 10% threshold for voting rights, on Sept. 28, the company announced. Formerly, he was the company’s largest private shareholder and owned the third largest percentage of capital. Munich Re was also Buffett’s largest international holding, above Sanofi (XPAR:SAN) and Tesco (LSE:TSCO), which he sold out last year. Continue Reading »