It's about Warren Buffett! U.S. stocks suddenly: several stocks fell 98%

Golden Ten New Media

2024-06-03 23:12Published in Guangdong

Several U.S. stocks are suspected of being abnormal, and Berkshire Hathaway even fell 98%.

On Monday, a number of market software showed that several U.S. stocks were suspected of abnormal markets, with Berkshire Hathaway (BRK.A.N), Bank of Montreal, Barrick Gold and other stocks falling by more than 98%, and the market was stationary.

A spokesperson for the New York Stock Exchange said the NYSE's equities division is investigating technical issues with the reporting of the Limit on Rise and Fall (LULD). Price limits are a mechanism to stop excessive volatility in stocks.

Berkshire Hathaway's Class A shares were suspended from trading, with fewer than 4,000 transactions recorded that day; Class B shares continued to trade, down less than 1% in early trading.

These moves do not appear to have had an impact on the major market averages. Joe Saluzzi, co-founder of Themis Trading, said, "Berkshire Hathaway, Chipotle and several other companies were suspended for no reason, and something was weird. ”

The NYSE's problems are yet another reminder that exchanges and data providers, at the heart of Wall Street, are not entirely infallible. Other recent examples include last week's suspension of index data by the Chicago Mercantile Exchange (CME) for up to an hour, and an error in the Nasdaq system last December that led to the cancellation of some orders.

There was also a day in January 2023 when the opening of some stocks did not proceed normally.

Under normal circumstances, Berkshire Hathaway's original Class A stock is one of the most expensive stocks on Wall Street, hitting an all-time closing high of $634,440 on March 28.

This is because Warren Buffett has never split stocks because he wants to attract shareholders who are investment-oriented and have a long-term vision. The Graham protégé has said that many Berkshire Hathaway shareholders use their shares as savings accounts.

In 1996, Berkshire Hathaway issued B shares at the equivalent of one-30th of a A share to cater to smaller investors who wanted a piece of Buffett's performance.

According to FactSet, Warren Buffett is Berkshire's largest shareholder, owning more than 38% of Class A shares. The "Omaha Prophet" also pledged to donate the wealth he had accumulated in Berkshire Hathaway.

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