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What is Chubb? 7 Things You Need to Know About the Warren Buffett Mystery Stock.

Warren Buffett Mystery Stocks - What is Chubb?  7 Things You Need to Know About the Warren Buffett Mystery Stock.

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Warren Buffett and Berkshire Hathaway (NYSE:BRK-ANYSE:BRK-B) were scrutinized yesterday as the closing bell sounded. That’s because yesterday was also the deadline for the company to file its 13F form for the first quarter. After Berkshire was able to confidentially file its 13Fs over the past six months, investors speculated that Berkshire had a “mystery stock” in the financial services industry.

What has become the mysterious Warren Buffett stock? Property and casualty insurer Chubb (NYSE:CB).

CB Stocks: What is Chubb?

Chubb, a property and casualty insurer, is benefiting from the massive premium increases that are boosting the financial results of most U.S. insurers. Here are seven other important things to know about Warren Buffett’s now-revealed mystery stocks.

  1. Berkshire owned 25.92 million CB shares worth $6.72 billion at the end of the first quarter. The company started buying shares of the insurer in the third quarter of 2023.
  2. Berkshire owns several insurance companies and is therefore very familiar with the insurance industry. As a result, the decision to buy CB stock implies that Chubb’s business is strong and healthy.
  3. Chubb is based in Zurich, Switzerland and has a presence in 54 countries.
  4. In the first quarter, Chubb’s premium and annuity revenues rose 14% from the same period a year earlier, to $11.58 billion.
  5. In the first quarter, Chubb’s operating income also rose 39% year-over-year (YOY) to $2.76 billion.
  6. Chubb was recently identified as one of the 25 least shorted U.S. stocks.
  7. Finally, CB stock has a relatively low price-to-earnings (P/E) ratio of 11.6 times, according to Yahoo Finance.

Chubb’s Price Action

At the time of writing, CB shares are up about 3% today. Heading into Thursday trading, shares were up about 12% so far this year.

As of the date of publication, Larry Ramer had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication Guidelines

Larry Ramer has been researching and writing articles about American stocks for fifteen years. He has worked at The Fly and Israel’s largest business newspaper, Globes. Larry started writing columns for InvestorPlace in 2015. His highly successful, contrarian choices included SMCI, INTC and MGM. You can reach him on Stocktwits at @larryramer.


Article printed from InvestorPlace Media, https://investorplace.com/2024/05/what-is-chubb-7-things-to-know-about-the-warren-buffett-mystery-stock/.

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