Error Due to Glitch in Software
On Monday, some traders thought that they had just completed the trade of a lifetime. Due to a software glitch, several stocks - including Berkshire Hathaway - were reported to be down over 99%.
In the case of Berkshire Hathaway, the data glitch led to their "A" shares being quoted at just $185/share - a far cry from their previous close price of over $620,000.
For a moment, Warren Buffett was one of us again, as his entire fortune had been practically "wiped out".
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A few traders actually managed to get filled at $185/share before trading in Berkshire Hathaway was halted.
For a moment in time, these traders were worth hundreds of thousands of dollars, if not millions, as "their" Berkshire Hathaway shares were suddenly marked up from $185 to over $620,000/share.
As most traders know, however, the NYSE and other exchanges have the power to "break" erroneous trades, and everyone knew that this would happen with the Berkshire Hathaway trades.
Earlier today, the NYSE announced that all of these trades will be cancelled.
So, if you managed to buy at $185/share, your gains will be short-lived.
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You'd have to go back to the late 1970s to find the last time that shares of Berkshire Hathaway traded below $200/share.
Filed under: General Knowledge
