Tags: Buffett | Disclose | IBM | buying

NY Times: Buffett Avoided Having to Disclose IBM Purchases Early

By    |   Wednesday, 16 Nov 2011 09:08 AM

Warren Buffet, the legendary CEO of Berkshire Hathaway, was able to avoid publicly disclosing that Berkshire was buying shares of IBM as it built up its position in the stock.

Buffett revealed Monday that Berkshire bought $10.7 billion of IBM shares over the past eight months. Berkshire is now the second biggest owner of IBM stock, with a 5.5 percent share of the company.

Firms managing more than $100 million are required by the Securities and Exchange Commission to reveal their shareholdings quarterly. But Buffett was able to receive a waiver in this case, as he has in others, The New York Times reports.

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Warren Buffett
(Getty Images photo)
SEC rules say the agency “may prevent or delay public disclosure of form 13F information [on share holdings] for public interest reasons or the protection of investors.”

Berkshire was able to keep its investment secret so that other investors wouldn’t piggyback on the purchases, making the next rounds of buying more expensive for Berkshire.

Buffett defends his stance. “There are only about three people I’d like to know what they are doing,” he tells The Times. “But I don’t feel entitled to know. In fact, I think it would be unfair.”

But the fact is that many insiders were probably aware of Buffett’s purchases – traders as the brokerage firms that executed them.

Given the large scale of the acquisitions, Berkshire probably used several brokers, offering plenty of people an information advantage.





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Warren Buffet, the legendary CEO of Berkshire Hathaway, was able to avoid publicly disclosing that Berkshire was buying shares of IBM as it built up its position in the stock. Buffett revealed Monday that Berkshire bought $10.7 billion of IBM shares over the past eight...
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2011-08-16
Wednesday, 16 Nov 2011 09:08 AM
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