{"id":314040,"date":"2010-02-12T23:50:00","date_gmt":"2010-02-13T04:50:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-7821136192515834047"},"modified":"2010-02-12T23:52:47","modified_gmt":"2010-02-13T04:52:47","slug":"cnbc-berkshire-hathaway-goes-into-sp-500-with-trading-surge-at-the-close","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/314040","title":{"rendered":"CNBC: Berkshire Hathaway Goes Into S&P 500 With Trading Surge At the Close"},"content":{"rendered":"

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Published: Friday, 12 Feb 2010 | 4:57 PM ET <\/span><\/div>\n
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By: Alex Crippen
Executive Producer<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Warren Buffett’s Berkshire Hathaway has been welcomed into the benchmark S&P 500 index with a surge of trading just before today’s close at the New York Stock Exchange.<\/p>\n

<\/span>CNBC’s Maria Bartiromo reports there was an enormous crowd around the Berkshire post on the floor of the NYSE.<\/p>\n

<\/span>Index mutual funds that mimic the performance of the S&P had to buy Berkshire Class B shares because the stock is being added to the index after today’s close.<\/p>\n

<\/span>Today’s Wall Street Journal<\/strong><\/a><\/strong><\/b> notes that over $1 trillion of investors’ money “directly tracks” the S&P.<\/p>\n

<\/span>Berkshire B shares fell to a low of $74.57 around 1p ET today, and then rebounded to end the day at $76.90, a gain of $0.21, or 0.27 percent. That’s 13.1 percent above the $68 close on January 26, the day S&P announced<\/strong><\/strong><\/b><\/a> Buffett would join the S&P.<\/p>\n

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<\/span>Some of the buying of B shares may have been the result of investors moving out of the much higher priced A shares. They closed down $950 at $114,000 on enormous (for the stock) volume of over 18,000 shares. CNBC producer Robert Hum at the NYSE reports there was a huge imbalance of sell orders that kept trading open until almost one hour after the closing bell.<\/p>\n

<\/span>In one especially large trade at 4:41p ET, just over 8-thousand shares went for $114,000 each.<\/p>\n

<\/span>Berkshire is replacing Burlington Northern in the S&P, now that the railroad is officially a Berkshire subsidiary<\/strong><\/strong><\/b><\/a> following today’s closing of Buffett’s $26 billion “bet on America.”<\/p>\n

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