Warren Buffett is Hiding Something Big

While Warren Buffett's Berkshire Hathaway third-quarter 13F was chock-full of goodies - including new stakes in several big pharma companies like Merck (NYSE: MRK) and Pfizer (NYSE: PFE) and a big sell-down of his bank holdings - there was a new goodie that flew under the radar. For the first time in years, Buffett disclosed that the firm is withholding confidential information from its 13F.

"Confidential information has been omitted from the public Form 13F report and filed separately with the U.S. Securities and Exchange Commission," the filing states.

This means Buffett is building a new large stake and is not ready to tell the world about it. SEC rules allow the withholding of confidential information if the investment firm can prove that disclosing the information would be detrimental to the firm.

The last time Buffett used the Confidential disclosure was in 2015 when Buffett was building a position in Phillips 66.

While it is unclear what stock Buffett & Co. are currently accumulating, yesterday before the 13F was filed there were vague rumors the firm was accumulating a position in PayPal (NASDAQ: PYPL). This could make sense as he already owns American Express (NYSE: AXP), Mastercard (NYSE: MA) and Visa (NYSE: V).

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