Christmas comes four times a year if you’re a fan of Warren Buffett. Thanks to regulatory requirements, acolytes get a peek at what stocks the Oracle of Omaha is buying and selling on behalf of Berkshire Hathaway , the holding company of which he is chairman. The Securities and Exchange Commission requires all investment managers with more than $100 million in assets to file a Form 13F quarterly to disclose any changes in share ownership.
These filings add an important level of transparency to the stock market, and gives Buffet-ologists a chance to get a bead on what he’s thinking. When Buffett starts a new stake in some company, or adds to an existing one, investors take that as a vote of confidence. On the other hand, if he pares his holdings in a stock, it can spark investors to rethink their own investments.