Warren Buffett’s Berkshire Hathaway (BRKB) opened a new position in insurer Chubb (CB), a 13F filing revealed late Wednesday, ending fevered speculation about the investing legend’s “mystery stock” purchase. Chubb stock broke out Thursday.
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The conglomerate bought nearly 26 million shares of Chubb worth $6.7 billion, the 13F filing showed. Although the Chubb position was revealed as part of Berkshire’s 13F filing for Q1, Berkshire purchased shares in the Zurich-based property and casualty insurer in earlier quarters. Those purchases were made confidentially, with the identity of the stock kept under wraps until the 13F filing on Wednesday.
In Q1, Berkshire ditched its entire HP (HPQ) stake, or nearly 23 million shares.
In addition, Buffett-led Berkshire sold roughly 116 million shares of Apple (AAPL) and 55.8 million shares of Paramount Global (PARA). Among other Q1 moves, the company reduced its position in Chevron (CVX) but added to Occidental Petroleum (OXY).
It was already known that Berkshire slashed a massive position in Apple by 13% last quarter, while also selling Paramount at a loss. Buffett disclosed those moves amid Berkshire’s Q1 earnings report on May 4. Apple remains one of Berkshire’s biggest stock holdings.
Reports of confidential stock purchases by Berkshire Hathaway have circulated since late last year. Those mysterious purchases, made in Q3 and Q4 of 2023, became known through financial disclosures.
Chubb joins several financial stocks in Berkshire’s equity portfolio. It also aligns with Berkshire’s operating businesses in the insurance industry, including car insurer Geico and reinsurer General Re.
Chubb stock gapped up 4.7% to 264.88 Thursday. Shares topped a 260.58 buy point from a flat base.
In 2023, Berkshire exited several financial stocks. But it continues to have huge stakes in the finance realm, including Bank of America (BAC), the top stock in Berkshire’s portfolio with 1.03 billion shares held.
Class B shares of Berkshire Hathaway nudged up 0.7% on the stock market today. Berkshire stock shows a flat base with a 430 buy point, still 3% below the entry.
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