How do you buy $10b.7n worth of stock in a big blue chip like IBM without alerting the market?
The WSJ’s Deal Journal has one answer. You cut a deal with the SEC:
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.
Isn’t that nice?
If you’re big enough to move the market, you can get special dispensation from quarterly reporting rules.
Now, Deal Journal doesn’t know for sure if Buffett received special treatments for his IBM holding. A new form, expected to filed with the SEC, will tell us more.
Two tier market, anyone?
Related link:
Buffett reveals $10bn stake in IBM – FT
Thanks for what, Warren? – FT Alphaville