🧐Q124 13F Digest| Why Warren Buffett is Quietly Adding Chubb?

WallStreet_Tiger
05-16

1. $Berkshire Hathaway(BRK.A)$ $Berkshire Hathaway(BRK.B)$ Revealed New Addings on $Chubb(CB)$ in Q1 2024

Major institutional investors like Berkshire Hathaway, Third Point, and other institutional investors filed 13F forms for the Q1 2024 by Wednesday, revealing their latest investment moves.

Read More>>13F Tracking | Berkshire Adds Chubb Stake While Sells Apple; Hedge Funds Buy Nvidia

Leave your comment and join to the theme topic on 🎁Track Q124 13F: Share Your Trusted Institutional Additions📈

Photo illustration of Warren Buffett, Dan Loeb and Stanley Druckenmiller, Source:Investopedia

Key Highlights about $Berkshire Hathaway(BRK.A)$ & $Chubb(CB)$ :

  • Berkshire's New Bet: Berkshire , led by Warren Buffett, has significantly invested in Chubb Insurance, which now constitutes 2.03% of its total portfolio as of March 31, 2024.

  • Portfolio Update: The Berkshire initiated an 8.1 million share position in Q3 2023, which expanded to 20 million shares by Q4 2023, and now holds 25.92 million shares of Chubb valued at over $6.7 billion..

  • Market Reaction: Following the 13F filing news, $Chubb(CB)$ 's stock price saw an increase of over 8% post-market close.

2. Why does Buffett Continue Buying $Chubb(CB)$ ?

Chubb Insurance , known for home, auto, and liability insurance, is a global giant with around 40,000 employees.

Omaha-based Berkshirehas outsized influence in the insurance industry, from auto insurer Geico to reinsurance giant General Re, and covers home and life insurance services.

The group acquired insurance company $Alleghany(Y)$ for $11.6 billion in 2022, which was Buffett's latest large acquisition.

Some phylosphy on Warren Buffett’s insurance investments:

Supported by ChatGPT

Buffett's insurance entities are central to Berkshire Hathaway, offering financial might and investment prowess. Through these companies, Buffett practices his value investing approach and makes impactful global investments.

"Chubb Insurance's appeal to Berkshire lies in its alignment with Berkshire's expertise in property casualty insurance, particularly commercial and specialty lines, making it a strategic fit for our portfolio," said Cathy Seifert, a CFRA analyst, in an email.

Special notes:

  • In 2016, insurance company Ace Limited acquired Chubb Insurance for $29.5 billion in cash and stock, and the merged company adopted the Chubb name.

  • Current Chubb CEO Evan Greenberg is the son of Maurice Greenberg, the former chairman and CEO of insurance giant $American International Group Inc(AIG)$.

Left: Father Maurice Greenberg, Right: Evan Greenberg, Source: Bloomberg

Notably, Berkshire kept its Q3 2023 Chubb transaction under wraps, with Buffett sidestepping the subject at Berkshire's May annual meeting in Omaha.

[Doubt] It's speculated that Buffett may already be regretting that ACE bought Chubb instead of Berkshire, given the higher cost of Chubb over the recent 2 years.

However, as Berkshire holds $189 billion in cash and equivalents as of March 2024, investors will be watching for further Chubb purchase.

3.Have you made a plan to follow the value investing master and buy Chubb?

Special Addings:

1) $Chubb(CB)$ Q124 Earnings show solid performance with core operating income and premiums exceeding.

Chubb Ltd Q1 Earnings: Solid Performance with Core Operating Income and Premiums Exceeding

2) $Chubb(CB)$ Q3 2024 EPS Estimates lyfted by Zacks Research:

Q3 2024 EPS Estimates lyfted by Zacks Research - Defense World

[Cool] How do you like Warren buffet’s portfolio?

Will you follow to invest in $Chubb(CB)$[Miser]

[Miser]Leave your comment and join to the theme topic below

🎁Track Q124 13F: Share Your Trusted Institutional Additions📈

A glance of $Berkshire Hathaway(BRK.A)$ ‘s Top 10 holdings

Source: Whalewisdom

$Apple(AAPL)$, $Bank of America(BAC)$ , $American Express(AXP)$, $Coca-Cola(KO)$ , $Chevron(CVX)$ , $Occidental(OXY)$ , $The Kraft Heinz Company(KHC)$ , $Moody's(MCO)$ , $Chubb(CB)$ , $DaVita HealthCare Partners(DVA)$ .

Disclaimer: The information provided is for educational purposes only and does not constitute investment advice. Investors should consult with a financial advisor before making any investment decisions.

13F: How Do Institutions Change Their Portfolio?
Hedge funds and institutions have released their holdings through 13F disclosures. Their reports will influence a great number of stocks. -------------------- How do they change their portfolio? What investing clue can we follow?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • BertScott
    05-16
    BertScott
    Remember to consult a financial advisor before making any investment decisions.
Leave a comment
1
10