The German reinsurance giant Munich Re says its happy Warren Buffett has a built a stake in the company worth over $1 billion.
A spokeswoman for the company tells Dow Jones, "We are pleased about every investor, that's a confirmation of our sustainable strategy."
This morning, Munich Re announced that Berkshire Hathaway's stake stood at 3.045 percent on January 18. The three percent level triggers a public disclosure under German rules.
Reuters quotes 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."