The legendary American investor Warren Buffett once said “The investor of today does not profit from yesterday’s growth.”
And this assessment is also reflected in his latest move: the sale of shares in Munich Re.
According to an official voting rights announcement, he is now reducing his share of the reinsurer, listed on Germany’s benchmark DAX index, to 4.6 percent. This is a significant step. Mr. Buffett began investing in the insurance company in 2010. With a holding of up to 12 percent, his company, Berkshire Hathaway, was long the largest single shareholder in the world’s largest reinsurance company. It was a worthwhile investment for Mr. Buffett. Munich Re’s share price has increased from about €100 ($110) in 2010 to more than €180 today, and Munich Re has paid out more than €6 billion in dividends to its shareholders in the same time period. In addition, a number of share buybacks have increased earnings per share.