{"id":232873,"date":"2010-01-26T13:12:00","date_gmt":"2010-01-26T18:12:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-483563180832874567"},"modified":"2010-01-26T13:23:15","modified_gmt":"2010-01-26T18:23:15","slug":"cnbc-munich-re-pleased-with-warren-buffetts-1-billion-stake","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/232873","title":{"rendered":"CNBC: Munich Re ‘Pleased’ With Warren Buffett’s $1 Billion Stake"},"content":{"rendered":"

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Published: Tuesday, 26 Jan 2010 | 12:56 PM ET <\/span><\/div>\n
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By: Alex Crippen
Executive Producer<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n

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The German reinsurance giant Munich Re says its happy Warren Buffett has a built a stake in the company worth over $1 billion.<\/p>\n

<\/span>A spokeswoman for the company tells Dow Jones<\/strong><\/a><\/strong><\/b>, “We are pleased about every investor, that’s a confirmation of our sustainable strategy.”<\/p>\n

<\/span>This morning, Munich Re announced<\/strong><\/a><\/strong><\/b> that Berkshire Hathaway’s stake stood at 3.045 percent on January 18. The three percent level triggers a public disclosure under German rules.<\/p>\n

<\/span>Reuters quotes<\/strong><\/strong><\/b><\/a> JP Morgan analyst Michael Huttner as saying, “It appears to be a portfolio investment for Buffett rather than a strategic one.” According to Reuters, Morgan believes industry regulatory changes could greatly benefit Munich Re “because of its ability to generate excess capital and grow its business.”<\/p>\n

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Merck Finck analyst Konrad Becker agrees that Buffett is simply betting on Munich Re’s stock price, telling Bloomberg<\/strong><\/strong><\/b><\/a>, “I would doubt that Buffett is interested in taking over Munich Re as that would expose Berkshire, which already has a significant reinsurance business, too much to the sector.”<\/p>\n

<\/span>Back in April of 2008<\/strong><\/a><\/strong><\/b>, Munich Re first told shareholders that Buffett had a stake, but didn’t say how big it was.<\/p>\n

<\/span>Buffett also has ties to another big reinsurer in Europe. Last week<\/strong><\/a><\/strong><\/b>, Berkshire took on some of Swiss Re’s U.S. individual life reinsurance business and last year<\/strong><\/a><\/strong><\/b> Berkshire bought a three percent stake.<\/p>\n

<\/span>Current Berkshire stock prices:<\/p>\n

<\/span>Class A: