Chubb Stock Jumps After Buffett's Berkshire Takes a Stake
Chubb stock is up on news Warren Buffett's holding company Berkshire Hathaway built a position in the insurance firm. Here's what you need to know.
Chubb (CB) stock is trading comfortably higher Thursday on news Warren Buffett's Berkshire Hathaway (BRK.B) holding company built a new position in the insurance firm.
In the most recent Securities and Exchange Commission (SEC) Form 13-F filing that revealed all the stocks Buffett is buying and selling, released late Wednesday, Berkshire Hathaway disclosed that it bought 25.9 million CB shares. This was worth a market value of roughly $6.7 billion as of March 31, 2024, or a 6.1% stake in the company.
Berkshire Hathaway began buying Chubb shares in the third quarter of 2023 and received permission from regulators to keep the holding confidential until it was done building its stake, according to CNBC.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
At the end of Q1 2024, Chubb was the ninth largest position in the Berkshire Hathaway equity portfolio, with a 2.0% weight.
The property and casualty insurer fits well within the Berkshire wheelhouse. Not only is Berkshire the parent company of insurance firms GEICO and Alleghany, but there are several large-cap financial stocks included in the equity portfolio, such as Bank of America (BAC) and Aon (AON).
The news of Berkshire's position in Chubb comes just weeks after the holding company's annual meeting, where Buffett said it reduced its stake in Apple (AAPL) by 13%. Even after this reduction Apple is still Berkshire's largest position, representing about 40% of the portfolio at the end of Q1 2024.
Where does Chubb stand with analysts?
Analysts are positive on the insurance giant. According to S&P Global Market Intelligence, the consensus analyst target price for CB stock is $268.36, representing implied upside of more than 2% to current levels. Meanwhile, the consensus recommendation is Buy.
Independent research firm Argus Research is one of the more bullish outfits on Chubb stock with a Buy rating and a recently increased price target.
"A provider of property and casualty and health/life insurance, as well as reinsurance, Chubb benefits from a strong brand, an experienced management team, and a healthy balance sheet," Argus said in a May 10 report. "We are raising our target price to $280 from $270."
The $280 price target represents implied upside of about 7% to current levels.
Related Content
-
Visa Stamps the Dow's 398-Point Slide: Stock Market TodayIt's as clear as ever that President Donald Trump and his administration can't (or won't) keep their hands off financial markets.
-
State Tax Changes 2026: Is Your State Cutting (or Raising) Taxes This Year?Tax Changes As a new year begins, taxpayers across the country are navigating a new round of state tax changes.
-
Who Said That? Match the US President to the QuotationWho better to give advice on aging, retirement and finances than a U.S. president? Our short quiz will determine whether you're a history buff or buffoon.
-
Visa Stamps the Dow's 398-Point Slide: Stock Market Today
It's as clear as ever that President Donald Trump and his administration can't (or won't) keep their hands off financial markets.
-
The December CPI Report Is Out. Here's What It Means for the Fed's Next MoveThe December CPI report came in lighter than expected, but housing costs remain an overhang.
-
The Paradox Between Money and Wealth: How Do You Find the Balance?Wealth reflects a life organized around relationships, health, contribution and time — qualities that compound differently than money in a mutual fund.
-
Billed 12 Hours for a Few Seconds of Work: How AI Is Helping Law Firms Overcharge ClientsThe ability of AI to reduce the time required for certain legal tasks is exposing the legal profession's reliance on the billable hour.
-
General Partner Stakes: Why Investors Are Buying Into the Business of Private EquityGP stakes in asset management firms offer exposure to private markets and are no longer just for the wealthy. Find out why it looks like a good year to invest.
-
Stocks Climb Wall of Worry to Hit New Highs: Stock Market TodayThe Trump administration's threats to Fed independence and bank profitability did little to stop the bulls on Monday.
-
How Worried Should Investors Be About a Jerome Powell Investigation?The Justice Department served subpoenas on the Fed about a project to remodel the central bank's historic buildings.
-
5 Golden Rules We (Re)learned in 2025 About InvestingSome investing rules are timeless, and 2025 provided plenty of evidence demonstrating why they're useful. Here's a reminder of what we (re)learned.
