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Does The SEC Let Warren Buffet Win In A Two-Tier Stock Market? We aRe The 99.99999999% | Anorak

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Does The SEC Let Warren Buffet Win In A Two-Tier Stock Market? We aRe The 99.99999999%

WARREN Buffet bought $10.7bn of IBM stock though his Berkshire Hathaway fund without making the markets notice. How?

The WSJ’s Deal Journal gets an idea:

Check out the footnote to Buffett’s latest disclosures of his investment holdings released by the SEC:

“Confidential information has been omitted from the Form 13F and filed separately with the Commission.”

In other words, Buffett got permission from the SEC to keep some of his stock holdings secret. This isn’t unusual for Buffett. Most big investors have to publicly reveal their stock investments every three months.

Problem is, when other investors get wind that Buffett is buying a stock, the price tends to zoom up — meaning the price goes up for Buffett to buy more. So Buffett periodically asks the SEC to keep some of his stockholdings a secret.

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Posted: 14th, November 2011 | In: Money | Comment