Warren Buffett’s Berkshire Hathaway Builds New Position in Chubb (CB) Stock, Driving Shares Higher

Are you looking to make smarter investment decisions? Well, Warren Buffett’s Berkshire Hathaway has recently made a significant move by building a new position in Chubb (CB) stock. This news has caused CB stock to trade higher, and investors are taking notice.

In the most recent SEC filing, Berkshire Hathaway disclosed that it bought 25.9 million shares of Chubb, worth approximately $6.7 billion as of March 31, 2024. This represents a 6.1% stake in the company. Berkshire Hathaway began buying Chubb shares in the third quarter of 2023 and kept the holding confidential until it had built its stake.

Chubb is now the ninth largest position in Berkshire Hathaway’s equity portfolio, with a 2.0% weight. The insurance giant fits well within Berkshire’s wheelhouse, as the holding company also owns insurance firms GEICO and Alleghany, along with other large-cap financial stocks like Bank of America and Aon.

Analysts are positive on Chubb stock, with a consensus target price of $268.36, representing more than 2% upside to current levels. Independent research firm Argus Research is particularly bullish on Chubb, giving it a Buy rating and a price target of $280.

Overall, Chubb’s strong brand, experienced management team, and healthy balance sheet make it an attractive investment opportunity. With Berkshire Hathaway’s vote of confidence, now might be a good time to consider adding Chubb stock to your portfolio. Subscribe to Kiplinger’s Personal Finance for more expert advice on investing and personal finance to help you make informed decisions.