(Berkshire Hathaway article updated with multiple trading day period)
OMAHA, Neb. (
new post-stock split B shares are off to a quick start after their first few days of trading.
Berkshire Hathaway B shares were above the 5 million trading volume mark within a half hour of the market open last Thursday; by the close of the market last Thursday, 14.5 million Berkshire Hathaway shares had been traded.
Last Wednesday, shareholders of Warren Buffett's investment company approved a 50-to-1 stock split that commenced on Thursday morning.
The initial frenzy of trading in Berkshire Hathaway shares has mitigated somewhat. Last Friday, 8.8 million Berkshire Hathaway shares were traded. On Monday, only 6.5 million Berkshire Hathaway shares traded.
Nonetheless, Berkshire Hathaway trading volume is now at an average daily level of 2.9 million shares, versus the previous 41,000 share daily average.
What's more, the total volume of close to 50 million shares of Berkshire Hathaway traded in the last five trading days equates to a trading level that it would have taken three-and-a-half years for the previous Berkshire Hathaway B shares to attain.
Prior to the stock split, Berkshire Hathaway's B shares had averaged 41,000 shares traded per day.
Berkshire's B shares -- the so-called cheap Berkshire shares, or baby shares -- were still trading at over $3,400 last Wednesday. And the
Berkshire Hathaway shares had already seen a notable spike in Wednesday's trading level, even before the stock split was completed.
Last Wednesday's action possibly was evidencing
investors speculating on a S&P 500 addition of Berkshire Hathaway given its expected volume after the stock split.
Warren Buffett was all over TV on Wednesday, chastising
for its purchase of Cadbury and chastising President Obama for his bank tax proposal. So it was a day of a raised public profile for both the man Warren Buffett and his Berkshire Hathaway shares.
However, over the course of the first five days of the new Berkshire Hathaway B shares, no clear trend has surfaced. Berkshire Hathaway B shares did hit a high of $73.43 on the big trading day last Thursday. However, the Berkshire shares were back to the $68.44 mark by Tuesday morning.
Of course, a trade in Berkshire's legendary portfolio provides shareholders with access to some of the biggest names in the global corporate elite: a 12.8% stake in
; 9.4% in Kraft; close to 7% in
; a little under 1% of
; close to 9% of
; and about-to-be-acquired
Welcome to the era of "Buffett for Everyone."
-- Reported by Eric Rosenbaum in New York.
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