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Warren Buffett Just Bought $6.7bn of this 'Mystery Stock'

Warren Buffett Just Bought $6.7bn of this 'Mystery Stock'

and it is .....

Pete Tan
May 18, 2024

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Investors have been buzzing with speculation about this "mystery stock" since late last year, and the revelation finally answered their questions.

Chubb (CB) stock soared on Thursday, climbing past a key buy point after Warren Buffett's Berkshire Hathaway (BRKB) disclosed a massive $6.7 billion stake in the insurance giant, according to recent regulatory filings.

Buffett's Berkshire Hathaway revealed it had acquired around 26 million shares of Chubb, valued at $6.7 billion, as shown in the 13F filing submitted on Wednesday. Although this position was part of Berkshire Hathaway's first-quarter filing, the shares were purchased in previous quarters, kept under wraps until now.

Buffett’s venture into the insurance sector dates back to his acquisition of Berkshire Hathaway, initially an undervalued textile manufacturer, in the early 1960s. The company later purchased the Government Employees Insurance Company (GEICO) in the late 1970s, which remains a cornerstone of its insurance operations, along with reinsurance giant Gen Re.

During the first quarter, insurance operations contributed 46% to Berkshire's operating earnings.

Chubb Stock Breaks Out

On Thursday, Chubb stock surged 4.7% to $264.89, surpassing the buy point of $260.58, according to market analysts. This jump marked a breakaway gap, an unusually strong breakout from a solid base indicating powerful demand. On Wednesday, shares had dipped slightly to $252.97. So far, CB has gained 12% in 2024.

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