Reported 5 months ago
Warren Buffett's $6.7 billion investment in insurance company Chubb has raised its stock price to all-time highs, leading Barron's Associate Editor Al Root to recommend investing in American International Group (AIG) instead. Root believes AIG offers better value, with improving fundamentals and CEO Peter Zaffino in a favorable position. Despite Chubb's strong track record, Root is less enthusiastic due to its high valuation post-Buffett's investment and lack of expected profit improvement. The potential for improved execution or acquisition by Buffett's Berkshire Hathaway could change the outlook for Chubb.
Source: YAHOO