Warren Buffett's latest stock moves are under the spotlight with the release of the 13F report. Investors are particularly curious about his holdings in the U.S. stock market.

Typically, investors focus on two main things in a 13F report: the top ten holdings and any changes made during the quarter.

This time around, the big news is Buffett's decision to reduce his stake in Apple (AAPL) and add a new, mysterious position in Chubb Ltd. (CB).

During the previous shareholder meeting, Buffett hinted that he reduced his Apple shares for tax reasons.

But the real attention-grabber in this report is the addition of Chubb Ltd. Let's take a closer look at what this company is, why Buffett is interested, and how its stock has been performing.

Why Buffett invests in Chubb

As of Q1 2024, Warren Buffett's Berkshire Hathaway holds 25.92 million shares of Chubb Ltd. worth $6.7 billion, making up 2.03% of its U.S. stock portfolio and ranking as Buffett's ninth-largest holding.

Why is this considered Buffett's most mysterious holding? It's because Buffett began building his position in Chubb Ltd. as early as Q3 2023, followed by consecutive increases in the following two quarters. However, none of these quarterly 13F reports disclosed this position, and Buffett himself hasn't mentioned it at shareholder meetings. Reports suggest that Buffett requested non-disclosure.

So why did Buffett secretly invest in this company?

Chubb Ltd. is a Swiss-based insurance company with a global presence in 55 countries and regions, covering nearly all insurance categories, including property, life, and reinsurance.

The company ranks fifth in market capitalization among global publicly-traded insurance companies.

In 2023, the company reported revenues of $49.74 billion, a 15.40% year-over-year increase, and a net profit of $9.02 billion, up by 71.85% compared to the previous year.

From the revenue growth perspective, Chubb Ltd. demonstrates considerable potential, maintaining good revenue growth over the past five years. In terms of profitability, the company achieved a net profit margin of 18% in 2023, indicating strong earning capabilities.

Moreover, Buffett has always emphasized shareholder returns, such as dividends and share buybacks, and Chubb Ltd. excels in this area as well. In 2023, the company paid a dividend of $3.41 per share. As of May 20, 2024, with a closing price of $264.14 per share, Chubb Ltd.'s dividend yield is around 1.3%.

While some investors may consider this dividend yield not particularly high, Chubb Ltd.'s strength lies in its stability. The company has been paying dividends for 31 consecutive years and increases them annually.

In summary, Chubb Ltd. is a company with growth potential and a track record of stable dividend payments.

Chart of the day

News of Buffett's holdings propelled Chubb Ltd. to a historic high of $275.41.

Technically, Chubb Ltd.'s stock has been robust since July 2023, soaring 51.6% in less than a year, from $181.65 to $275.41 in May 2024.

Technical indicators：

Images provided are not current and any securities are shown for illustrative purposes only and is not a recommendation.

• Trend: The stock has been in an upward channel since July 2023. While recently breaking above the upper boundary, it failed to hold, indicating potential resistance.

• Overbought/Oversold: With the RSI above 70, short-term overbought suggests a possible pullback.

• Support and Resistance: Previous highs may act as support levels in case of a pullback.

Next move?

Buffett's continued accumulation hints at his endorsement, though his future actions remain uncertain. His disclosure may have temporarily pushed the stock into overbought territory, with previous highs potentially providing short-term support.

Additional Disclosures: This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, opinions or forecasts provided herein will prove to be correct