Monday, November 14, 2011

It's Buffett's Move


Berkshire Hathaway drove the price higher
When its IBM deal hit the wire,
So the charge could be made
Of an insider trade,
Since Buffett knew he was the buyer.

In a case of self-fulfilling prophecy, Berkshire Hathaway's purchase of 5.4% of IBM for $10.7 billion prompted a 12% surge in the technology services company's share price once it became public. Although large purchases of public shares must normally be disclosed in 13F filings, the SEC grants about 60 confidentiality waivers every quarter, allowing investors to accumulate shares without driving their prices up. For his part, Mr. Buffett has overcome his fear of tech companies by recognizing in IBM an entrenched service provider with a protective "moat" against would-be competitors. Notwithstanding new highs in the share price, Mr. Buffett believes that, for IBM, the best is yet to come.
Hat tip to... somebody on Twitter for the insider trading joke, and apologies for forgetting who it was.

3 comments:

  1. For trading to be deemed "inside"
    One must use this rule as a guide
    There has to be profit
    And therefore, our Buffett
    If he didn't sell, can't be tried

    ReplyDelete
  2. Bet365 Casino & Promos 2021 - JTM Hub
    Full list of Bet365 Casino & Promos · Up to £100 in Bet Credits for new https://vannienailor4166blog.blogspot.com/ customers https://febcasino.com/review/merit-casino/ at bet365. Min deposit 출장안마 £5. Bet Credits 출장마사지 available for use upon settlement of bets to value of herzamanindir.com/

    ReplyDelete

Popular Posts