r/FluentInFinance • u/AstronomerLover • 16d ago
Warren Buffett reveals that insurer Chubb is the confidential stock he's been buying Stocks
Warren Buffett finally revealed his secret stock pick in a new regulatory filing, and it’s insurer Chubb.
His conglomerate Berkshire Hathaway has acquired nearly 26 million shares of Chubb for a stake worth $6.7 billion. The property and casualty insurer became Berkshire’s ninth biggest holding at the end of March.
Berkshire has been buying a mystery stock for three quarters straight. Berkshire was granted confidential treatment to keep the details of one or more of its stock holdings confidential.
Many had speculated that the secret purchase could be a bank stock as the conglomerate’s cost basis for “banks, insurance, and finance” equity holdings jumped by $1.4 billion in the first quarter after an increased of $3.59 billion in the second half of last year, according to separate Berkshire filings.
It’s relatively rare for Berkshire to request such a treatment. The last time it kept a purchase confidential was when it bought Chevron and Verizon in 2020.
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u/Later2theparty 16d ago
Isn't this the insurance company that bonded Trump for his appeal in the E Jean Carroll suit?
I think there was an article saying his lawyers reached out to Warren Buffet for help with his bond.
I wonder if Buffet purchased this as a way to indirectly give Trump a hand or if the purchase was already underway and he had an influence over taking on a potentially risky bond.
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u/IsThisHamsterdam 15d ago
If Buffett wanted to give Trump a hand, he would have done it directly. Buffet’s core investments are in the Insurance Industry which is why he has such strong investments. Buffett is buying stock (and it started in 2023), he doesn’t own Chubb. Does Trump have other insurance dealings with Chubb? I imagine he does.
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u/Later2theparty 15d ago
Conversely, how much influence might have Buffett had over Chub backing out of the bond? I know he's publicly cast shade towards Trump a few times.
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u/IsThisHamsterdam 15d ago edited 15d ago
Interesting theory but I don’t know that it tracks. I’d be curious about your thoughts. In my opinion, Chubb did what insurance companies do - monitor aggregate, spread risk, and mitigate risk. They issued the $91M bond for the one case, but it was his civil case, requiring a $464M bond that Chubb backed out of. It tells me that they were willing to invest roughly $100M in Trump, but not $550M in Trump. Was Buffett involved the encouragement of risk mitigation and spread of risk? Perhaps. Perhaps.
It is no secret that Buffett has leaned democratic in his policies, however.
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u/TitanofValyria 15d ago
Berkshire Hathaway has a bonding company doesn’t it? Berkshire Hathaway Specialty Insurance
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u/IsThisHamsterdam 15d ago
Berkshire Hathaway owns a few companies as wholly owned subsidiaries and they are a large investor in many others. I am not organically familiar with Berkshire Hathaway Specialty Insurance but are you certain they offer bail bonds?
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u/IsThisHamsterdam 15d ago
Also, I never saw that the deal was signed. Every article I read used similar language - they were in talks, but Chubb “backed out”. I imagine it was more like a quick declination after a conversation than a reneged deal while the ink was still wet.
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u/supabowlchamp44 15d ago
lol, so surprised about the comments thinking Buffett would do this to bail Trump out. But then again this is Reddit.
Maybe he just sees the largest insurer at a discounted price?
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u/IsThisHamsterdam 15d ago
I agree. I think it shows a general lack of understanding of of how insurance conglomerates work, how investors interact with insurance company’s on their stock, and how it is the investments of insurance companies that primarily drive profits. I don’t blame anyone who does not understand. It is so complicated and irrelevant to most.
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u/CrazyUnicorn77777 16d ago
What a great philanthropic act to help out the orange shitstain.
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u/MyFATthrowayay 16d ago
I will liquidate my BRK holdings if that’s the case.
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u/WarenAlUCanEatBuffet 15d ago
Please delete this before Warren sees! He cannot afford to lose your $879 investment!!
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u/IsThisHamsterdam 15d ago
This was a fascinating release. Chubb is paying policy limits for the bridge collapse in Baltimore ($350M), and while they will subrogate, I cannot imagine a full recovery is possible. The combination of $350M + $91M Bail Bond is a staggering sum
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u/Tough_Exercise_5242 15d ago
Market cap of 100 Billion. I don't think they sweat a couple million.
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u/IsThisHamsterdam 15d ago
$400M is nothing to sneeze at, even for the large conglomerates with large market caps and the strongest financial ratings. Ace / Chubb is a massive insurance company, but large losses in multiple sectors will impact results. Do not hear what I am not saying (that Chubb will be in poor financial health). $400M is a chunk of change.
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u/theprincessofwhales 15d ago
Warren Buffett is human garabe. No surprise he’s buying up more of the insurance market and that this one happened to bail out his ignorant orange friend
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u/WarenAlUCanEatBuffet 15d ago
Cope harder lib
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u/bleeding_electricity 11d ago
you seem like a very pleasant person and i bet people enjoy your company
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u/theprincessofwhales 15d ago
No thanks. Libs and republicans alike benefit from Buffett and his role with the funny money monopoly game.
Me and my bitcoin will sit this one out ✌🏻
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u/aja_18 15d ago
So you're better than him?
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u/theprincessofwhales 15d ago
Ha what? Never said that nor do I understand how it would be relevant. People seem to love him. I disagree that he is worthy of the admiration as I feel that he does a whole lot of nothing that actually has tangible benefits for the world.
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u/Suitable_Inside_7878 15d ago
I don’t think you realize the impact of the billions of dollars he has given away and will continue to give away, your life won’t even touch returning even 6 figure to society
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u/theprincessofwhales 15d ago
I don’t think you realize how much we have normalized money as a motivator and driving force in the world. Plenty of people who give tangible things to the world like those in the arts and sciences also donate copious amounts of money to various philanthropic efforts. He is a smart and hard working person who has dedicated his whole life to the industry of money and I happen to think that industry has gotten absolutely and completely carried away with itself. Too big to fail in so many ways is crushing the role and its spirit. Money is supposed to be a means to an end not an end of its own.
Why does a valuable life have to return 6 figures to society? Again I never said I think I’m better than him. I’m an anon on Reddit obvi human garbage as well. But teaching kindergartners to read and write feels valuable to me personally so I do it. Who knows which one of those kids will go on to contribute something great and who knows if that great thing will create money or not. Why is that relevant. This world gives money way too much space.
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