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- Warren Buffett has a secret stock in his portfolio.
- Berkshire Hathaway, a billionaire investor, excluded “confidential information” in its quarterly portfolio update on Monday, instead filing it separately with financial regulators.
- David Case, a finance professor at the University of Maryland and a close follower of Buffett and his company, said Nihe Shank is now building a big position.
- “I suspect Berkshire is building a big position in a public company and will continue to do so before they disclose it,” said Edward Jones analyst James Shanah, covering Berkshire.
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Warren Buffett seems to be buying new stock but he doesn’t want to sprinkle the beans yet.
In the third quarter filing of Berkshire Hathaway in the third quarter, released on Monday, prominent investors appear to have sought regulatory approval not to disclose its ongoing purchases.
The filing states that confidential information has been excluded from the Public Form 13F report and has been filed separately with the US Securities and Exchange Commission.
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The Berkshire chief probably wants more time to increase his share of his fortune. That said, it would encourage other investors to buy the same stock, increasing the price Buffett has to pay.
“He’s definitely building a big position now and he could announce it in his next 13F,” said David Casey, a finance professor at the University of Maryland who has followed Buffett closely for more than 30 years.
“Buffett has received confidential treatment several times in the past,” Case continued. “I think around 2015 they were making a position in Philips 66.”
Indeed, the secrecy clause appears in 13 F in the second quarter of 2015, published in Berkshire’s Gust of that year. A few weeks later, Buffett and his team announced a 2.5 2.5 billion stake in Philips 66 in a revised 13F filing.
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Buffett and his team could repeat that strategy.
“I suspect Berkshire is building a big position in a public company and will continue to do so before it is announced,” Edward Jones analyst James Shanah, covering Berkshire, told Business Insider.
Berkshire’s third-quarter earnings put the value of its equity portfolio at 30 245 billion as of Sept. 30, excluding Kraft Heinz, Shanah said. However, its એ 220 billion holdings are shown in its 13F filing.
He added that the company’s investment of about 6 6 billion in five Japanese trading houses in the 12 months to August is only partial to the value difference. An undisclosed investment may be a missing link.
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Buffett’s hidden holdings are the latest sign that he is scratching to deploy Berkshire’s vast cash reserves after covering the epidemic earlier this year.
Berkshire – which slashed the shares of “Big Four” airlines and slashed its bank holdings in the second quarter – announced more than 19 billion in investments in the third quarter, and in an update to its portfolio announced new pharmaceutical holdings. . On monday.
