Buffett sold a large portion of his stake in Munich Re (HAM:MUV2) in 2015 citing a terrible outlook for the reinsurance business. A year and a half later, it’s clear he would have continued to profit on the stock if he had held it, but it is unclear how long that will last and whether his vision is still to come true.
The CEO of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) held more than 10% of Munich Re, one of the world’s largest reinsurers with 50 billion euros in revenue, since 2010 and at one point held around 12% of the company. Munich Re’s stock in October 2010 started around $103.65 per share, but Buffett’s annual letter from that year showed that he paid roughly $150 per share for the entire 19,259,600-share holding with a total cost of $2.896 billion. Continue Reading »