Source: Cai Lianshe Author: Xia Junxiong
On Monday morning, due to technical issues, Berkshire Hathaway A shares under the investment of the "Stock God" Buffett's dropped 99.97% to $185.1 per share. As for whether trades conducted during the abnormal stock price display are valid, it was reported that the NYSE stated in an email that all erroneous trades of Berkshire Hathaway will be cleared.
On Monday (June 3) Eastern Time, the New York Stock Exchange stated that the issue that caused abnormal stock prices to be displayed has been resolved and is under investigation.
During early trading on Monday, Berkshire Hathaway A shares, owned by the "stock god" Buffett, dropped 99.97% to $185.1 per share due to technical issues. The price for Berkshire Hathaway B shares were not affected by the technical malfunction, however.
At Monday's close, Berkshire Hathaway A shares rose 0.59% to $631,110.1 per share, while Berkshire Hathaway B shares rose 0.09% to $414.79 per share.
The affected stocks go beyond Berkshire Hathaway A shares, and according to the Consolidated Tape Association (CTA), dozens of stocks were affected, including other well-known names such as Barrick Gold and NuScale Electrical Utilities. CTA is an institution that provides real-time stock quotes for major exchanges.
Regarding whether the trades completed during the period of abnormal stock price display are valid, according to media reports, the NYSE stated in an email that all erroneous trades for Berkshire Hathaway will be cleared.
Under normal circumstances, Berkshire Hathaway A shares are among the highest-priced stocks on Wall Street. The stock reached a historic high closing price of $634,440 per share on March 28 of this year. As of last week, Berkshire Hathaway A shares were even priced approximately 45% higher than the median home price in the US.
The high price for Berkshire Hathaway A shares is mainly because Buffett has never split the stock, as he wants to attract shareholders with long-term investment perspectives. Buffett has stated that many of Berkshire's shareholders treat their stocks as savings accounts.
Despite this, in 1996 Berkshire Hathaway issued B shares at 1/30th the price of A shares to accommodate small investors who want to benefit from Buffett's performance.
According to FactSet data, Buffett is the largest shareholder of Berkshire Hathaway, owning over 38% of A shares. Buffett has managed Berkshire Hathaway since 1965 and has pledged to donate his accumulated wealth in the company.
Editor/Lambor