German Disinvestment

Warren Buffett Cuts Stake in Munich Re

Warren Buffet. Source: Reuters
Warren Buffet.
  • Why it matters

    Why it matters

    Warren Buffett has been a loyal backer of Munich Re. By reducing his holdings he will leave other investors wondering if they should do the same.

  • Facts

    Facts

    • Warren. Buffett has reduced his holding in Munich Re from a high of 12 percent in 2010 to 4.6 percent.
    • The Munich Re share price has increase from €100 in 2010 to more than €180.
    • The Munich Re share is currently trading 11 percent higher than at the beginning of the year.
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    Audio

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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.

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