After months of waiting, investors finally learned the identity of the mystery stock Berkshire Hathaway has been scooping up over the past few quarters. The conglomerate added nearly 26 million shares of Chubb (NYSE: CB), the largest publicly traded property and casualty insurance company.

Although investors may have been hoping for something more exciting, Chubb is a prototypical Warren Buffett stock. Buffett has a special affinity for the insurance business and the cash flows they generate, and Chubb is one of the largest, most diversified insurance companies out there. Here's why it was an ideal stock for Buffett and his team at Berkshire.

Image source: The Motley Fool.

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Source Fool.com