Warren Buffett's "Mystery Stock" Finally Revealed

The Oracle of Omaha has been building his CB stake amid SEC-approved confidentiality

Deputy Editor
May 16, 2024 at 8:56 AM
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Chubb Ltd (NYSE:CB) is 7.5% higher in premarket trading, after Warren Buffett's Berkshire Hathaway finally revealed the Swiss-based insurer as its "mystery stock."  Berkshire disclosed a 6% stake in the company, and now holds 25.9 million shares of Chubb stock worth roughly $6.7 billion, becoming its ninth biggest holding as of the end of March.

Berkshire obtained permission from the U.S. Securities and Exchange Commission (SEC) to keep the purchases confidential in the third and fourth quarter of last year. In the time that the purchases were made, CB made massive moves on the chart, culminating in an all-time high of $260.59 on March 13. Should today's premarket gains hold, Chubb stock will touch a new record high and add to its 26.7% year-over-year lead.

Despite the outperformance, analysts are bearish on CB. Of the 20 in coverage, 11 rate the security a "hold" or worse, while the consensus 12-month price target of $270.10 is a 6.8% premium from last night's closing perch at $252.97.

Also of note is the stock's 14-Day Relative Strength Index, sitting on the cusp of "overbought" territory at 69.5, indicating a short-term pullback may be in the cards. 

 

 

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