Chubb Limited (NYSE:CB) shares are trading higher Thursday after an SEC filing showed Berkshire Hathaway purchased 25.92 million shares of the stock.
The Details:
Berkshire Hathaway, led by Warren Buffett, disclosed a 6% stake in the company valued at roughly $6.7 billion. Chubb is Berkshire Hathaway's ninth largest holding as of the end of March.
Berkshire obtained permission from the U.S. Securities and Exchange Commission (SEC) to keep one or more purchases confidential in the third and fourth quarter of last year, presumably to keep the share price from running higher as the purchases were made. Chubb was revealed as the firm's confidential purchase in Tuesday's 13F filing.
Chubb shares have gained more than 18% over the last six months and are trading at all-time highs. Chubb is one of the largest domestic property and casualty insurers, with operations in 54 countries spanning commercial and personal property and casualty insurance, reinsurance and life insurance.
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How To Buy CB Stock:
By now you're likely curious about how to participate in the market for Chubb – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
In the the case of Chubb (NYSE:CB), which is trading at $263.19 as of publishing time, $100 would buy you 0.38 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
CB Price Action: According to Benzinga Pro, Chubb shares are up 4.15% at $263.46 at the time of publication Thursday.
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