Berkshire Hathaway's Investment Insights: Buy Kroger, Nu Holdings

A recent report suggests strategic stock picks from Berkshire Hathaway, highlighting Kroger's consistent dividend growth and Nu Holdings' expansive growth potential, while advising caution on Chubb due to impending losses from recent hurricanes.

Date: 10-10-2024

AI Rating: 6

The report analyzes stock picks from Berkshire Hathaway, focusing on Kroger and Nu Holdings as buying opportunities, while forecasting challenges for Chubb.

Kroger

Kroger (NYSE: KR) is noted for its consistency in net income, having rare and short-lived losses primarily due to extraordinary circumstances. The report highlights its strong dividend history with 18 consecutive years of annual payout increases, driven by factors such as inflation and acquisitions. Management expects growth to continue, particularly in light of a potential merger with Albertsons, which would significantly enhance its operational scale and pricing power.

Nu Holdings

Nu Holdings (NYSE: NU) shows robust growth prospects with a reported doubling of income year over year. The company saw an increase in deposits by 64% and added 5.2 million new customers recently. The report emphasizes the vast market potential in Latin America, suggesting that with increased connectivity, adoption of online banking services will continue to rise.

Chubb

The report cautions against investing in Chubb (NYSE: CB) due to anticipated net losses from significant claims arising from recent hurricanes. These losses may provoke panic-selling among investors, despite Chubb's historical resilience in recovery and growth. The company's current position could yield buying opportunities in the future once the adverse effects pass.

Stocks: KR NU CB