Finance News
Buffett, Berkshire, Chubb | Fox Business
Chubb CEO Evan Greenberg discusses the impact of climate change on insurance prices on ‘The Claman Countdown.’
When investors got wind of the news Warren Buffett’s Berkshire Hathaway added Chubb to its portfolio in May, the insurer became a new celebrity stock.
The $6.72 billion stake of 25.9 million shares sent shares to an all-time high, and it’s currently trading just below that level. Buffett, known for buying companies for the long haul, puts Chubb in the ninth-largest position among his other marquee holdings, which include Coca-Cola, Apple and American Express.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CB | CHUBB LTD. | 254.08 | -1.49 | -0.58% |
| KO | THE COCA-COLA CO. | 63.33 | +0.18 | +0.29% |
| AAPL | APPLE INC. | 221.55 | +1.28 | +0.58% |
| AXP | AMERICAN EXPRESS CO. | 235.71 | -0.26 | -0.11% |
While Buffett doesn’t explain why he buys or sells a particular stock when its disclosed, his past remarks give a sense of what he looks for, including companies considered “moats” unable to be matched or accessed by competitors.
WARREN BUFFETT LIKES “MOATS” AND ELEPHANT-SIZED ACQUISITIONS
“In business, I look for economic castles protected by unbreachable ‘moats,'” Buffett said in a 1995 letter to shareholders. At the time, he gave a shoutout to his insurance company Geico for holding that title.
His love for the insurance business isn’t new. He owns Geico, repped by the likable green reptile and General Re. So, what does the Oracle of Omaha see in Chubb?
In this photo illustration, the Geico logo is displayed on a smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images / Getty Images)
Is it the company’s 1.4% annual dividend? Nope, according to CEO Evan Greenberg, son of legendary 99-year-old former AIG CEO and insurance industry pioneer Hank Greenberg.
“We are actually a low yielding stock. You don’t buy us for dividends. It’s about 1.4%, He’s not buying it for the dividend,” Greenberg explained during an interview on ‘The Claman Countdown’ last month.
What Buffett likely sees, Greenberg suggests, is years ahead of steady upside for the insurer.
Double-digit earnings growth
“We’re actually a growth company. Our earnings have been growing in double-digits for the last few years, and, as we look forward, we’ll continue robust earnings growth,” said Greenberg, who also touted the multiple streams of income the insurer is fielding in the U.S. and abroad.
Warren Buffett is joined onstage by 24 other philanthropists and influential business people featured on the Forbes list of 100 Greatest Business Minds during the Forbes Media Centennial Celebration at Pier 60 Sept. 19, 2017, in New York City. (Daniel Zuchnik/WireImage / Getty Images)
Multiple streams of revenue growth, invested assets
“We’re well diversified, property casualty/underwriting; one source of income. Our invested asset, as interest rates have risen and are at a rate than we’ve seen in a couple of decades. That’s another source of income,” he said.
During the company’s first quarter, its pre-tax investment income rose over 25% to $1.39 billion, while adjusted net investment income jumped 23% to $1.48 billion.
Life insurance business in U.S., Asia
And then there’s Chubb’s bread and butter.
“We have a growing life insurance business in Asia. We are a global company, over 40% of business is outside the United States. We are the largest commercial insurer in the U.S., and 20% of our business is in Asia,” he said.
Chubb shares have gained over 13% this year, slightly trailing the S&P 500’s 15%+ rise. Berkshire Hathaway is Chubb’s largest single shareholder, and Greenberg is the second, according to ThomsonOne.
The insurer is scheduled to report quarterly earnings July 24.
‘Shark Tank’ investor Kevin O’Leary joins ‘Fox & Friends’ to discuss Elon Musk and Vivek Ramaswamy leading DOGE, Trump’s potential appointments for Treasury secretary, and the first-ever crypto czar.
Weighing in on rumblings around a potential Trump-appointed crypto czar, popular entrepreneur Kevin O’Leary called on whoever’s nominated to put an end to regulatory indecision.
“We’ve got to stop these shenanigans because this is a technology that affects all 11 sectors of the economy,” O’Leary said Thursday on “Fox & Friends.”
“It provides efficiency and digital payment systems. And we have to be competitive worldwide.”
According to industry sources familiar with the discussions, President-elect Trump is mulling a position dedicated solely to cryptocurrency policy. It’s unclear whether the role would be a czar type or a White House staff role, but the official holding the position would interact with regulators, including the Securities and Exchange Commission and the Commodity Futures Trading Commission.
BITCOIN E.T.F. OPTIONS GO LIVE IN BUSY TRADING. MOST BETS ARE ON GAINS
Two names that come to O’Leary’s mind are former acting U.S. Comptroller of the Currency Brian Brooks and Coinbase CEO Brian Armstrong.
Kevin O’Leary put pressure on a potential Trump-nominated crypto czar to start making regulatory decisions as soon as possible. (Getty Images)
“Brian, of Coinbase, he’s being sued by [SEC Chair Gary] Gensler right now. His company is under litigation from the SEC,” the O’Leary Ventures CEO noted.
“We need a czar here, and we need to start making decisions. Is Ethereum a commodity, or is it a security? Pick one and go with it. I don’t care which one it is, but we’ve got to at least pick it,” he added. “We haven’t done that yet.”
‘Making Money’ host Charles Payne discusses the history of money.
The president-elect campaigned heavily among pro-crypto voters, making a stop at crypto bar PubKey in New York City and speaking at the Bitcoin 2024 conference in Nashville, Tennessee, just weeks before Election Day.
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Manward Press chief investment strategist Shah Gilani discusses how high the S&P 500 can climb in 2025 on ‘Making Money.’
Bitcoin, the largest cryptocurrency by market value, touched a new all-time high of $94,000 in afternoon trading Wednesday and has advanced over 156% from its 52-week low of $36,815.63 in November 2023, as tracked by Dow Jones Market Data Group.
iShares Bitcoin ETF Trust
The surge in price has lifted crypto exchange-traded funds, driving the assets of the largest, iShares Bitcoin Trust, to over $40 billion and lifting it to a record high.
Other bitcoin ETFs are also seeing high interest.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BTC | GRAYSCALE BITCOIN MINI TRT ETF BITCOIN MINI TRUST BTC ETF | 43.34 | +1.50 | +3.59% |
| GBTC | GRAYSCALE BITCOIN TRUST ETF – USD ACC | 77.62 | +2.63 | +3.51% |
| FBTC | FIDELITY WISE ORIGIN BITCOIN FUND – USD ACC | 85.42 | +2.88 | +3.48% |
| ARKB | ARKB – ARK 21SHARES BITCOIN ETF – USD ACC | 97.54 | +3.24 | +3.44% |
FOX Business’ Suzanne O’Halloran contributed to this report.
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Finance News
Ford recalls nearly 25,000 trucks for problem that could make rearview camera malfunction
‘Car Wizard’ David Long joins ‘The Big Money Show’ to share his top ‘no-brainer buys’ under $10,000.
Ford is recalling nearly 25,000 trucks because of a problem that could make the rearview camera system malfunction.
The automaker said water “may enter the Tailgate Park Assist Sensor Interface Module” and lead to a malfunction of the rearview camera image display in 24,950 of its 2023-2024 F-250, F-350 and F-450 trucks.
All the potentially affected trucks feature a tailgate top camera that “provides additional camera images when the tailgate is down and is a separate camera from the primary rear-view camera,” Ford said in a Oct. 25 recall report submitted to the National Highway Traffic Safety Administration (NHTSA).
A 2023 Ford Super Duty F-350 Limited. (Ford Motor Co. / Fox News)
The recall report indicated the problem stemmed from “certain mating interfaces” of the tailgate top camera being “out of tolerance” and the camera bracket “retain[ing] water” during the application.
FORD TO PAUSE PRODUCTION OF F-150 LIGHTNING PICKUP
In the event that the issue occurs, the rearview camera image may show up as “blue or black” or only work “intermittently,” things that could pose a safety issue due to reduced driver visibility, according to the report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 10.24 | -0.04 | -0.39% |
FORD CANCELS PLANS FOR ELECTRIC THREE-ROW SUV
It has not led to any known accidents or injuries, Ford said in another document.
A badge on a vehicle at a Ford dealership in New Lebanon, New York, on Jan. 25. (Angus Mordant/Bloomberg via Getty Images / Getty Images)
According to the recall report, owners of the recalled trucks can get their tailgate top camera, wire harness and TPASIM module swapped out at a Ford or Lincoln dealership for free. Their “Image Processing Module A” will receive a software update too, it said.
“Pick-up and delivery will be available at participating dealerships,” a Ford spokesperson told FOX Business. “We’re also working through other potential options that would make completing this recall as convenient as possible for our customers.”
FORD RECALLS 144,500 MAVERICK TRUCKS DUE TO REARVIEW CAMERA DISPLAY ISSUE
Affected Ford F-250, F-350 and F-40 owners can expect to see a recall notification letter in their mailboxes in early December.
Ford said early last month it has sold over 853,400 of its various types of trucks in the U.S. so far this year.
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