- It looks like Warren Buffett has a secret stock in his wallet.
- Billionaire investor Berkshire Hathaway has sidelined “confidential information” in its quarterly portfolio update on Monday, instead of presenting it separately to financial regulators.
- “He’s definitely building a great position right now,” said David Kass, a professor of finance at the University of Maryland and a close follower of Buffett and his company.
- “I suspect Berkshire is building a great position in a public company and would like to continue to do so before disclosing that,” said James Shanahan, an analyst at Edward Jones that covers Berkshire.
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It looks like Warren Buffett is buying a new stock but still doesn’t want to spill the beans.
It appears that the notorious investor obtained permission from regulators not to disclose the purchase made in the third quarter of Berkshire Hathaway’s 13F file released on Monday.
“Confidential information in Form 13F’s public report has been omitted and submitted separately to the U.S. Securities and Exchange Commission,” the file says.
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The Berkshire leader probably wants more time to grow his stake. Revealing it could encourage other investors to buy the same stock, raising the price Buffett has to pay.
“He’s certainly building a great position and can reveal it in the next 13F,” David Kass, a professor of finance at the University of Maryland, has been following Buffetti closely for more than 30 years, Business Insider.
“Buffett has received confidentiality treatment several times in the past,” Kass continued. “I think he was recently building a position at Phillips 66 around 2015.”
In fact, the confidentiality clause appears in Berkshire’s 13F for the second quarter of 2015, published in August of that year. Buffett and his team revealed a $ 2.5 billion stake in Phillips 66, a change introduced in 13F, a few weeks later.
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Buffett and his team may repeat this strategy.
“I suspect Berkshire is building a great position in a public company and I would like to know that before I disclose that,” James Shanahan, an analyst at Edward Jones that covers Berkshire, told Business Insider.
Berkshi’s third-quarter earnings on September 30 put the value of its capital portfolio at $ 245 billion, excluding Kraft Heinz, Shanahan said. However, its 13F presentation only showed up on $ 220 billion in farms.
The company has made an investment of approximately $ 6 billion in five Japanese trading houses over the 12 months of August, adding that to some extent it has only had that difference in value. There may be a lack of hidden investment.
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Buffett’s clandestine exploitation is the latest sign that hexing to expand Berkshire’s large money reserves after taking pandemic coverage this year.
Berkshire suffered losses as a result of the shares of the “big four” airlines and reduced bank holdings in the second quarter – announcing $ 19 billion in investments during the third quarter and revealing about $ 6 billion in portfolio updates on new pharmacy holdings. on Monday.