Warren Buffett and Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) were under great scrutiny going into the closing bell yesterday. That’s because yesterday was also the deadline for the company to file its first-quarter 13F form. After Berkshire was able to file its 13Fs confidentially for the past six months, investors speculated that Berkshire was holding a “mystery stock” within the financial services sector.
What did the Warren Buffett mystery stock turn out to be? Property and casualty insurer Chubb (NYSE:CB).
CB Stock: What Is Chubb?
A property and casualty insurer, Chubb is getting a lift from the huge increases in premiums that are boosting the financial results of most U.S. insurers. Here are seven other important things to know about the now-revealed Warren Buffett mystery stock.
- Berkshire owned 25.92 million shares of CB stock worth $6.72 billion as of the end of Q1. The company started buying shares of the insurer in Q3 2023.
- Berkshire owns multiple insurance firms, so it is very familiar with the insurance business. As a result, the decision to buy CB stock implies that Chubb’s business is strong and healthy.
- Based in Zurich, Switzerland, Chubb has a presence in 54 countries.
- In Q1, Chubb’s revenue from premiums and annuities soared 14% versus the same period a year earlier to $11.58 billion.
- In Q1, Chubb’s operating income also jumped 39% year-over-year (YOY) to $2.76 billion.
- Chubb was recently identified as one of the 25 least shorted U.S. stocks.
- Finally, CB stock has a relatively low forward price-to-earnings (P/E) ratio of 11.6 times, per Yahoo Finance.
Chubb’s Price Action
As of this writing, CB stock is up about 3% today. Heading into Thursday trading, shares had risen about 12% so far this year.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
