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Warren Buffett seems to be buying a secret stock that could be revealed in weeks



Warren Buffett

  • Warren Buffett seems to have secret stocks in his portfolio.
  • The conglomerate of billionaire investor Berkshire Hathaway omitted “confidential information” in its quarterly portfolio update on Monday instead of filing it separately with financial regulators.
  • “He’s definitely building a big position now,” said David Cass, a professor of finance at the University of Maryland and a close follower of Buffett and his company.
  • “I suspect Berkshire is building a big position in a public company and they would like to continue to do so before revealing it,”
    ; said James Shanahan, an analyst at Edward Jones, who covers Berkshire.
  • Visit the Business Insider homepage for more stories.

Warren Buffett seems to be buying a new stock, but he still doesn’t want to spill the beans.

The famous investor appears to have received permission from regulators not to disclose his current purchase in a Berkshire Hathaway statement for the third quarter, which was released on Monday.

“Confidential information was omitted from the public report on Form 13F and submitted separately to the US Securities and Exchange Commission,” the statement said.

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Probably the Berkshire boss wants more time to raise his nascent bet. Its disclosure could prompt other investors to buy the same shares, raising the price Buffett has to pay.

“He’s undoubtedly building a big position right now and may reveal it in his next 13F,” David Cass, a finance professor at the University of Maryland who has been following Buffett closely for more than 30 years, told Business Insider.

“Buffett has received confidentiality several times in the past,” Cass continued. “I believe that recently around 2015 he was building a position at Philips 66.”

In fact, the confidentiality clause appeared 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 in a modified 13F file a few weeks later.

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Buffett and his team can repeat this strategy.

“I suspect Berkshire is building a big position in a public company, and they’d like to keep doing it before they reveal it,” James Shanahan, an analyst at Edward Jones, who covers Berkshire, told Business Insider.

Berkshire’s third-quarter profit fixed the value of its stock portfolio on Sept. 30 at $ 245 billion, excluding Kraft Heinz, Shanahan said. However, his 13F declaration shows only $ 220 billion in holdings.

The company’s investment of about $ 6 billion in five Japanese retailers in the 12 months to August only partially reflects this difference in value, he added. The secret investment may be the missing link.

Read more: Barclays describes in detail its best strategy for selecting winners in the market to stay at home for the world after COVID – and shares 2 stocks that all investors must own before the recovery accelerates

Buffett’s hidden ownership is the latest sign that he is itching to expand Berkshire’s vast cash reserves after being covered by the pandemic earlier this year.

Berkshire – which lost airlines’ big four shares and cut its second-quarter bank holdings – announced more than $ 19 billion in investments in the third quarter and unveiled about $ 6 billion in new pharmaceutical holdings in the portfolio update. your on monday.


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