Berkshire Trims Disney Stake 80% Over 2 Quarters

Warren Buffett’s Berkshire Hathaway Inc. reported shedding more than 80% of its stake in Walt Disney Co., the world’s No. 2 media company, during the last quarter of 1999 and the first quarter of last year.

Berkshire and affiliates of the Omaha-based insurer reported holding 3.9 million shares as of March 31, 2000, down from 20 million shares reported Sept. 30, 1999, according to filings with the Securities and Exchange Commission.

Disclosures of some Berkshire investments for the last quarter of 1999 and the first quarter of 2000 were made Thursday, after the SEC denied Buffett’s attempt to get confidential treatment for some of Berkshire’s holdings. The billionaire investor in the past has used a procedure that lets Berkshire delay disclosure of some stocks for a year or more to protect an investment strategy from copycat traders.

The first-quarter 2000 report was submitted to the SEC last May 15, the filing said. Although the SEC disallowed confidential treatment, the agency’s ruling came Jan. 31--preserving Berkshire’s secrecy for 8 1/2 months. The fourth-quarter 1999 statement was filed back on Feb. 14 and denied confidentiality also on Jan. 31, putting off its disclosure just five days short of a year.

Disney spokesman John Dreyer said the company would have nothing to say about Buffett’s decision to dump the Disney shares. “We don’t comment on investor’s decisions,” he said.

It’s been known that Berkshire had reduced its stake in Disney to some extent since last May, when the entertainment concern was dropped off a list of top Berkshire investments. No explanation was given at the time. A holdings report last August showed Berkshire cut its Disney stake by about 8.8 million shares between June 30, 1999, and Sept. 30, 1999. But information about further reductions wasn’t available until Thursday.

Thursday’s reports indicated Berkshire and affiliates reduced their Disney stake by 7.8 million shares during the fourth quarter of 1999, followed by a drop of about 8.2 million shares in the first quarter of last year.

Disney shares have gained almost 24% since the end of September 1999. The shares rose $1.13 Thursday to $32.13 on the New York Stock Exchange.