Buffett's Berkshire Hathaway reveals $7B stake in Chubb

Shares of Chubb (CB) are jumping after a Berkshire Hathaway (BRK-A, BRK-B) regulatory filing revealed its 6.4% stake in the company. The last time Berkshire Hathaway did not immediately reveal the identity of a stock in its holdings was in 2020 with Chevron (CVX) and Verizon (VZ).

Berkshire Hathaway is focused on the insurance industry, with GEICO being one of its largest holdings.

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This post was written by Melanie Riehl

Video transcript

Another stock that we're watching today is Chub shares of the insurance company.

They're jumping, jumping as Destiny's Child would say by about 6%.

And this is after Warren Buffett's Berkshire Hathaway revealed that this was the secret stock pick that the Buffett team has been betting on in a new regulatory filing here.

They're seeing shares as we mentioned jumping, they are also higher over the course of this year.

Last I checked as well for Chubb, but of course, a lot of mystery to know what Warren Buffett is invested in, in the business of, of moats.

Are you seeing the year to date up by about 12%?

Yeah, this is Ben over now here and we, we want to point out that clearly, this isn't a huge surprise.

Given the focus at Berkshire Hathaway has on the insurance business, given some of the commentary when I was out at the annual shareholder meeting just two weekends ago, just the uppie commentary that him and his executives had when it comes to the insurance business and the focus that that is going to be here for Berkshire going forward and where those opportunities lie within their portfolio.

So I think the what what's also important to point out here is that this is relatively unusual to hold to not reveal the identity of a stock in one of your holdings here, at least for Berkshire.

And the last time they did, they did this was four years ago when you take a look at the holdings that uh that Berkshire had in Chevron and Verizon back in 2020.

So I think the mystery, the suspense surrounding this really gained a lot of attention.

The fact that he was not asked about this at the shareholder meeting a couple of weeks ago was a bit of a surprise.

I was hoping to get a little bit of commentary there from him.

But the fact that we are getting this now and the fact that it is Chubb just really shows that Berkshire is remaining committed here to some of their focus that we have seen clearly at Berkshire over the last several decades.

And the fact that they think that Chubb is well positioned within the space, given their margin expansion, given their underwriting margins are so strong and they have seen solid growth here over the last several quarters.

Yes.

And in the insurance business is that they've consistently had exposure to in the past.

Of course, Geico being one of the largest hold things that has really gained a lot of traction or fanfare after Berkshire Hathaway took a stake in that and also thinking about the CP I numbers that even came out showing where inflation still is.

And isn't I actually posted this on my Instagram yesterday and I was surprised at how many friends slid my D MS afterwards and were just like auto insurance is crazy right now.

Dude, it's absolutely insane.

And, and Berkshire has exposures to multiple types of insurance business is and so everybody is keeping tabs on when insurance premiums are going to start to recede a little bit here.

But for Berkshire right now, there's so much that gets factored in whether it be the parts that go into different parts of the insurance business here.

When you've got to make sure that a claim that's submitted is able to be serviced upon or even the wages that go into making sure that the servicing is done properly.

All these things considered, I think that's where Berkshire is made.

It's really concerted play.

And also, of course, it's a business of floats as well.