US exchange regulator allows Buffett to keep his investment secret

Billionaire investor Warren Buffett yesterday disclosed that the US Securities and Exchange Commission (SEC) had given his investment company Berkshire Hathaway special permission to keep secret his investment in IBM - and maybe investments in other companies also.

Buffett yesterday said that Berkshire Hathaway had bought a 5.5-per cent stake in International Business Machines, worth a total $10.7 billion, his biggest investment in a technology business so far. (See: Buffett invests $10.7 billion in IBM, builds 5.5 per cent stake) http://www.domain-b.com/companies/companies_I/IBM/20111114_warren_buffett.html

Berkshire started buying the shares in March, buying up stocks worth $10.7 billion, Buffett said, adding that IBM was not aware that he had bought about 64 million shares of IBM worth over $10.7 billion.

Buffett said IBM did not know that he was building a stake and that the company was finding out about his investment for the first time after he disclosed it on CNBC in an interview.

Omaha-based Berkshire did not disclose the building of stake in IBM in its quarterly filing in April, and in August with the SEC although companies must compulsory disclose stock holdings in 13F filings with the exchange regulator.

In Berkshire's quarterly April and August filings, although there was no mention of its stake held in IBM, there was a footnote that said, "Confidential information has been omitted from the form 13F and filed separately with the commission."