The Oracle of Omaha is at again. Warren Buffett went shopping again at the discount aisle of the stock market. He backed up his words of just two weeks ago when he stated that stocks are cheaper than bonds. He is going back where he started and buying an insurance company. So, what did Buffett buy?
Buffett added to his position in reinsurance company Munich Re. Buffett upped his stake to a 10.24% share of reinsurer Muich Re. Before the deal Buffett had a 3% stake in Munich Re. Buffett’s Berkshire Hathaway (NYSE:BRK.A) partnership has now invested $2.9 billion dollars in the German reinsurer. This would make Munich Re the 6th largest holding of Berkshire Hathaway right below Kraft Foods (KFT) and above Johnson & Johnson (NYSE:JNJ).
Buffett stated that he plans to increase his investment in Munich Re over the next year. Shares of Munich Re currently trade for over $150 a share.