1 BRK Is essentially a holding company - effectively a tax-efficient capital growth mutual fund that does nott have to distribute its portfolio earnings (interest, diividends, and cap gains) to shareholders annually (as true mutual funds must). By investing in dividend stocks, BRK deploys that dividend income (after paying tax on them) for long-term capital appreciation in BRK PPS rather than re-distributing the divi post-tax income to BRK shareholders and subjecting the shareholders to double taxation of the dividend income from the portfolo companies. This is smart for longterm capital appreciation and wealth-building.
2 BRK has no 'sweetheart deal' with the SEC. ANY registered issuer can request confidential treatment (CT) for information that otherwise would be disclosable in filings - CT is only temporary and delays the disclosure. The SEC only demands a reason - a very minimal summary explanation - as to the basis for why CT is appropriate. We routinely have issuers in bet-the-company litigation (e.g., patent and trade secret, commercial contract disputes) request (and get) CT for anything other than the most basic overview/summary of the matter. The SEC essentially takes the issuer's word and does no investigation - an inappropriate CT claim will eventually become apparent and the SEC can take action at that later date, if appropriate. I have never seen the SEC reject a CT request, although they do ask for a reason for the minimal basis to support the CT request. No "sweetheart deal" needed. I have made CT justifications for the SEC for numerous issuer 10-Ks involved in major commercial liitigation - sometimes CT spanning multiple sequential years.These justification responses are typically a short(ish) paragraph or maybe two and occasionally a phone call also.
