General Re: Buffett's $22 Billion Hedge

Buying the giant reinsuter gives him elbow room if stocks fall

Even for Warren E. Buffett, success can have a downside. America's best-known stock market investor has piled up big profits with big bets on big U.S. companies. But that begs a question. Suppose Buffett wanted to lighten up on his more stratospheric stock holdings, say, to protect against a fall. Could he make a major move without unnerving the legions of investors who follow his every transaction? If his agreement to buy General Re Corp. is any indication, Buffett is up to the challenge.

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