Chubb (CB) stock surged early Thursday, signaling a possible move above an official buy point after Warren Buffett’s Berkshire Hathaway (BRKB) revealed Wednesday it had built a $6.7 billion position in the insurance giant, according to regulatory filings.

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Buffett bought around 26 million shares of Chubb worth $6.7 billion, the 13F filing submitted on Wednesday showed. Although Buffett revealed the Chubb position as part of Berkshire Hathaway’s first-quarter filing, BRKB purchased shares in the Zurich-based property and casualty insurer in earlier quarters.

Those purchases were made confidentially, with the identity of the stock kept a mystery until Wednesday’s 13F filing. Investors have been speculating about what the “mystery stock” has been since late last year.

Insurance was the first territory into which Buffett expanded Berkshire Hathaway after purchasing the undervalued textile manufacturer in 1962-64. The company acquired the Government Employees Insurance Company in the late 1970s. GEICO continues to represent the core of its insurance industry operations, which also include reinsurance giant Gen RE.

Insurance operations generated 46% of Berkshire operating earnings during the first quarter.

Chubb Stock Eyes Breakout

Chubb stock bolted 8% higher during premarket trading action on Thursday. If the move holds through the open, CB stock will breakout past an official 260.58 entry from a flat base pattern, according to MarketSurge analysis. On Wednesday, shares angled down a fraction to 252.97. CB has gained 12% in 2024.

Chubb stock has a 91 Composite Rating out of a best-possible 99. The new Warren Buffett stock also has a 71 Relative Strength Rating and a 97 EPS Rating.

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