This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Berkshire Volume Nears 20 Million

(Berkshire Hathaway story updated for closing price and volume spike)

OMAHA, Neb. ( TheStreet) -- The market may have been expecting Berkshire Hathaway's (BRK.B) addition to the S&P 500 for some time already, but it didn't act that way on Wednesday.

Just under 20 million Berkshire Hathaway B shares were traded on Wednesday. That would equate to well over a year of trading in Berkshire Hathaway's B shares at its previous average daily volume of 41,000 shares.

Even though Berkshire Hathaway has had some big trading days in the past week -- on Jan. 21, close to 15 million shares were traded -- Wednesday was the biggest day yet for trading in Warren Buffett's stock.

Of course, the recent big days of trading in Berkshire Hathaway were preceded by the 50-to-1 stock split in Berkshire's B shares, which created a level of liquidity in the shares that finally allowed S&P to invite Warren Buffett into the biggest market benchmark.

What's more, Berkshire Hathaway shares were up close to 5% on a day when all the broad market indexes were up by much smaller gains, after the Fed said it would keep interest rates near current historically low levels. The financial sector to which Berkshire is most closely linked was up 1% at the close on Wednesday.

This week's hubbub surrounding the Berkshire Hathaway B shares started on Tuesday night after S&P announced that Berkshire Hathaway would replace its newest acquisition Burlington Northern (BNI) in the market bellwether S&P 500 Index.

In the after-market session on Tuesday and pre-market session on Wednesday, Berkshire was up more than 8%.

Berkshire Hathaway's gain of just under 5% by the close on Wednesday also easily beat the S&P 500's rise of 0.5% on Wednesday. Take that S&P, from your newest holding. Maybe now the all the talk about Berkshire's underperformance versus the S&P 500 in 2009 will draw to a close.

Berkshire's B shares were up 4.9%, or a little over $3.36, to a price $71.36 at the close on Wednesday.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AXP $53.98 0.00%
KO $42.44 0.00%
WMT $67.00 0.00%
WFC $47.86 0.00%
AAPL $94.02 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs