Berkshire Hathaway Stock Alert: Warren Buffett Could Reveal His Mystery Buy Today


  • Conglomerate Berkshire Hathaway (BRK-A, BRK-B) saw its shares rise modestly on Wednesday.
  • Wall Street is buzzing around a sizable confidential position that could be revealed later today.
  • Many speculate that the Berkshire Hathaway mystery stock stems from the financial sector.
Berkshire Hathaway mystery stock - Berkshire Hathaway Stock Alert: Warren Buffett Could Reveal His Mystery Buy Today

Source: reinstein

Conglomerate giant Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) – which covers a broad range of sectors from insurance to utilities – saw its shares grab the spotlight on Wednesday. Speculation has heightened around a confidential position that Warren Buffett’s enterprise acquired at some point in the second half of 2023. With the disclosure deadline today, the Warren Buffett mystery stock could be revealed soon.

According to Investor’s Business Daily, the conglomerate previously stated during its Q1 earnings report that it reduced a significant position in consumer technology giant Apple (NASDAQ:AAPL) by 13%. It also exited multinational mass media firm Paramount Global (NASDAQ:PARA). However, not all of the moves were revealed publicly, which could come in a 13F filing with the U.S. Securities and Exchange Commission (SEC) late Wednesday.

The spotlight centers on the so-called Berkshire Hathaway mystery stock. Several Buffett watchers speculate that the security may relate to a financial firm. Per Edward Jones analyst James Shanahan, it could be Charles Schwab (NYSE:SCHW), Morgan Stanley (NYSE:MS) or American International Group (NYSE:AIG).

Business publication Barron’s added its own possible candidates for the Berkshire Hathaway mystery stock. Besides Morgan Stanley, it identified BlackRock (NYSE:BLK) or Chubb (NYSE:CB). “The mystery company or companies probably are in the financial sector because the cost basis of Berkshire’s equity holdings in financial stocks has risen by about $5 billion in the past three quarters and declined for two other categories of stocks,” wrote Barron’s Andrew Bary.

Not the First Rodeo Regarding a Berkshire Hathaway Mystery Stock

Institutional stakeholders of U.S.-based securities reveal their positions in 13F disclosures. However, according to the SEC website, these investors have the option of requesting confidential treatment. That’s exactly what Berkshire did regarding its Q4 filing.

While interest has spiked regarding the Berkshire Hathaway mystery stock, this isn’t the first time the conglomerate has requested such treatment. In late 2020, Berkshire requested confidentiality when it was acquiring shares of Chevron (NYSE:CVX) and Verizon Communications (NYSE:VZ).

However, to Barron’s point, the “company makes use of confidential filings more than other big investors.” It then raises the question about the significance of the Berkshire Hathaway mystery stock in relation to the conglomerate’s strategy.

According to a research paper submitted to the Journal of Financial and Quantitative Analysis, entities may choose to keep their trades quiet because “confidential positions earn positive and significant abnormal returns over the post-filing confidential period.”

In other words, confidential investments tend to perform better relative to normal market expectations. Therefore, keeping the cards close to the chest may better protect proprietary investing strategies.

Why It Matters

It’s not out of the realm of possibility that Berkshire could request another quarter of confidential treatment. However, Barron’s states that such a circumstance would be unusual. Should the disclosure come later today, the conglomerate will likely amend its filings for Q3 and Q4 to include the much-discussed security.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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