CA - Chubb: 3 Reasons Why A Full Buyout By Berkshire Is A Possibility
2024-06-20 14:51:12 ET
Summary
- Warren Buffett's Berkshire Hathaway Inc. has been aggressively acquiring Chubb Limited shares recently.
- I see the possibility of a full buyout of Chubb by Berkshire for 3 good reasons.
- These reasons include valuation, Berkshire Hathaway's large cash position, and Buffett's fondness for the insurance industry.
- Even if the buyout does not materialize, Chubb Limited is a good investment opportunity by itself.
CB stock and Warren Buffett’s position
If you are reading this, you must have already known that Warren Buffett’s Berkshire Hathaway Inc. ( BRK.A , BRK.B ) recently acquired a sizable chunk of Chubb Limited (CB) shares. The chart below shows the most filing of BRK’s equity portfolio holdings. As you can see, Apple (AAPL) remains the largest holding by far (comprising more than 40% of the $331 billion portfolio), followed by several other legacy holdings such as Bank of America (BAC) and American Express (AXP). The CB stake is one of the latest added positions....
Chubb: 3 Reasons Why A Full Buyout By Berkshire Is A Possibility