{"id":206371,"date":"2010-01-20T17:42:00","date_gmt":"2010-01-20T22:42:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-8817655946903676545"},"modified":"2010-01-20T17:44:53","modified_gmt":"2010-01-20T22:44:53","slug":"the-street-com-berkshire-hathaway-volume-spikes","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/206371","title":{"rendered":"THE STREET.COM: Berkshire Hathaway Volume Spikes"},"content":{"rendered":"

By Eric Rosenbaum<\/span> <\/span><\/span>01\/20\/10 – 05:01 PM EST<\/span><\/p>\n

OMAHA, Neb. (TheStreet<\/a>) — Berkshire Hathaway<\/b>(BRK.B Quote<\/a>)<\/span> was up more than 4.3% on Wednesday afternoon, on close to 7 times its average level of daily trading — with 233,000 shares traded versus an average of 34,000.<\/p>\n

On Tuesday, Berkshire traded at a level of 100,000 shares, which was itself the highest trading level in the Warren Buffett stock since November. <\/p>\n

Why all the fuss? It wasn’t that Warren Buffett was on CNBC<\/i> saying one of his investments, Kraft <\/b>(KFT Quote<\/a>)<\/span>, had made a bad deal for Cadbury<\/b>(CBY Quote<\/a>)<\/span>. Or that Buffett berated President Obama for the bank tax. <\/p>\n

No, the real reason: Berkshire Hathaway shares are going to $66 on Thursday. <\/p>\n

Shareholders of Warren Buffett’s investment company approved on Wednesday a plan to split Berkshire’s B shares 50-to-1, bringing the share value down from near $3,300 to the S&P 500-worthy level of $66. <\/p>\n

While S&P has not commented on the potential addition of Berkshire to the famed index, analysts who cover Berkshire stock believe it is likely. What’s more, economists that track S&P 500 additions have noted that a stock like Berkshire Hathaway can receive a big bump <\/a> from inclusion in the index. <\/p>\n

The 4.3% spike in Berkshire Hathaway’s share price on Wednesday was equal to $144, raising the share’s value to $3,476. <\/p>\n

Other than the one day in November — Nov. 4 — when Berkshire traded above 100,000 shares, Warren Buffet’s stock hasn’t seen a level of activity above 100,000 shares in one day since last March. Two days in a row with elevated trading, and two consecutive days during which trading has more than doubled, is notable for Berkshire Hathaway stock. <\/p>\n

Maybe investors are preparing for the S&P 500 bump. <\/p>\n

— Reported by Eric Rosenbaum in New York. <\/i> <\/p>\n

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