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Getty Images / Bill Pugliano
- Warren Buffett appears to have some secret action in his wallet.
- The billionaire investor’s Berkshire Hathaway conglomerate on Monday omitted “confidential information” in its quarterly portfolio update, instead of filing it separately with financial regulators.
- “He’s definitely building a big position now,” said David Kass, a professor of finance at the University of Maryland and close to Buffett and his company.
- “I suspect that Berkshire is building a strong position in a public company and they would like to continue to do so before disclosing it,” said James Shanahan, an Edward Jones analyst who covers Berkshire.
- Visit the Business Insider homepage for more stories.
Warren Buffett appears to be buying new stock but doesn’t want to spill the beans just yet.
It appears the notorious investor has obtained permission from regulators not to disclose his pending purchase in Berkshire Hathaway’s 13F file for the third quarter, which was released on Monday.
“Confidential information has been omitted from the Form 13F public report and filed separately with the United States Securities and Exchange Commission,” the record reads.
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The Berkshire chief probably wants more time to grow his budding stake. Revealing it could cause other investors to buy the same stock, driving up the price Buffett has to pay.
“He’s definitely building a big position now and could reveal that in his next 13F,” David Kass, a finance professor at the University of Maryland who has followed Buffett closely for more than 10 years, told Business Insider. 30 years.
“Buffett has received confidential treatment several times in the past,” Kass continued. “I believe more recently, around 2015, he was in the process of creating a position for himself in Phillips 66.”
Indeed, the confidentiality clause appears in Berkshire’s 13F for the second quarter of 2015, published in August of the same year. Buffett and his team revealed a $ 2.5 billion stake in Phillips 66 in an amended 13F filing weeks later.
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Buffett and his team may be repeating this strategy.
“I suspect Berkshire is building a strong position in a public company and they would like to continue doing so before disclosing it,” James Shanahan, an Edward Jones analyst who covers Berkshire, told Business Insider.
Berkshire’s third-quarter earnings pegged the value of its stock portfolio on September 30 at $ 245 billion excluding Kraft Heinz, Shanahan said. However, his 13F deposit only showed $ 220 billion in holdings.
The company’s investment of around $ 6 billion in five Japanese trading houses in the 12 months leading up to August only partially explains this difference in value, he added. Secret investing could be the missing link.
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Buffett’s hidden possession is the latest sign he’s eager to deploy Berkshire’s vast cash reserves after hedging himself from the pandemic earlier this year.
Berkshire – which exited the ‘big four’ airline stocks at a loss and reduced its bank holdings in the second quarter – announced more than $ 19 billion in investments in the third quarter and revealed about $ 6 billion in new pharmaceutical holdings in its portfolio update on Monday.
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