Thursday, October 20, 2005

Buffett Gets a Free Ride?

This is a pretty interesting article that confirms lots of my speculations.

"Professional speculators and arbitrageurs use our regulatory filings in a manner that yields them quick profits, at the direct expense of fund investors. In particular, information provided on Form 13F -- a formerly routine regulatory filing -- is being used in a way that was never intended and is harming fund shareholders," former ICI president Matthew Fink wrote in a 2002 report to members.

Other people, a select group of sophisticated investors, including Warren Buffett, are given "confidential treatment" from even having to file 13F disclosures with the government. That means they can keep secret for as long as a year trading information that would otherwise be made public.

I agree with Thomas Kostigen when he says that everyone should have to file these kind of disclosures. Or they should all be put in the dark by making it so no one has to file 13Fs at all. Whichever the case Buffett and his ilk should not get any kind of preferential treatment at all. Especially if it is harming fund investors.

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