CB - Why Chubb Stock Popped This Morning
2024-05-16 11:15:41 ET
Shares of property and casualty insurer Chubb (NYSE: CB) leaped out of the gate Thursday morning. Early on, they were up by as much as 6.6%, and though that gain moderated as the session progressed, they were still up by 3.4% as of 11 a.m. ET. The insurer can thank Warren Buffett for the surge of attention.
After the close of trading on Wednesday , the famed billionaire investor revealed in a Securities and Exchange Commission (SEC) filing that he owns $6.7 billion worth of Chubb stock. And now, everybody else in investing-land wants to buy a piece of Chubb for themselves.
As The Wall Street Journal reported Thursday morning, Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) had been secretly building a stake in Chubb since the second half of 2023. By law, all institutional investors managing portfolios in excess of $100 million are required to reveal all of their holdings as of the end of each quarter via their 13F Forms, which they file with the SEC. But in 2023's third and fourth quarters, Berkshire asked for and received confidentiality from the SEC with regard to its Chubb position, which it was still in the process of building. The 13F forms filed about 45 days after those quarters ended revealed that it was buying something, but not exactly what it was buying. The identity of Buffett's secret investment only became public with its first-quarter 2024 13F filing Wednesday.
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Why Chubb Stock Popped This Morning