Buffett and the SEC

What?

Buffett\’s Berkshire Hathaway investment firm has been buying shares in IBM since March and now owns 64 million shares, or about 5.4% of the outstanding stock, Buffett said in an interview on Monday on the financial news channel CNBC.

The investor was given permission by securities regulators to keep the purchases secret for several months but having finalised the purchase the firm also revealed….

Why?

Why does Buffett get a let out on reporting his purchases?

Anyone actually know? That is, what\’s the reason given, rather than just because it\’s Buffett?

4 comments on “Buffett and the SEC

  1. Have a look at the comment by perny, November 14 6:59pm http://on.ft.com/rB1Bfe

    Certain entities can apply for non-reporting of trades until completion. Apparently Buffett had to apply twice as he’d been buying for some months.

  2. Private investors (“natural persons” was the term used) can apply but unless you’re really rich you won’t be buying enough stock to move the market. As it happens, IBM rallied from roughly $160 to $190 over the period he was buying and quite likely it would have been evident to some brokers & market makers that it was Buffett who was buying.

    Buying on the LSE, if I remember correctly buying over 3% of the shares in a company must be reported, I don’t believe there can be any exemptions but reporting may be delayed until after the close.

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