Warren Buffett has invested in a new stock but he doesn’t seem to be ready to reveal the name yet.
Berkshire Hathaway’s 13F filing for the last quarter published on Monday showed that the billionaire was able to get permission from regulators to keep his investment a secret.
“Confidential information has been omitted from the public Form 13F report and filed separately with the US Securities and Exchange Commission,” said the filing.
According to experts, the decision might have been made to control price as revealing the name of the stock may generate buzz, causing its price to skyrocket, making it more expensive for Buffett to buy.
“He is undoubtedly building a large position now and may reveal it in his next 13F,” said David Kass, a University of Maryland finance professor who keeps a close eye on Buffett’s financial decisions.
This is not the first time that Buffett has kept his investment a secret.
“Buffett has received confidentiality treatment several times in the past,” Kass continued. “I believe most recently around 2015 he was building a position in Phillips 66.”
It appears that Buffett is repeating the same strategy.
“I suspect that Berkshire is building a large position in a public company and they would like to continue to do that before disclosing it,” said James Shanahan, a financial analyst who mainly covers Berkshire.
While there isn’t much known about the investment, it looks like Buffett is ready to enter the market in a big way after sitting on the side since the pandemic hit the world.
Berkshire, which was earlier in the news for exiting major airline stocks at huge losses and reducing stake in the banking sector in the second quarter of the year, invested more than $19 billion in the last quarter with a special interest in pharmaceutical companies.
Keep checking this space for more on this secret investment.