• A technical issue on the NYSE incorrectly showed Berkshire Hathaway’s A-class shares down nearly 100%
• Trading was halted in Berkshire Hathaway’s A-class shares, as well as in Barrick Gold and Nuscale Power stocks due to the technical glitch
• The NYSE stated that the issue stemmed from incorrect price-bands published by the Consolidated Tape Association, which provides real-time stock quotes
The New York Stock Exchange experienced a technical issue on Monday that caused Warren Buffett’s Berkshire Hathaway Class A shares to appear down nearly 100%. Trading was halted in Berkshire and other affected stocks as the NYSE investigated.
Trading halted in Berkshire Hathaway and other stocks
The technical problem caused Berkshire’s Class A shares to show an incorrect 99% drop in value on the NYSE Monday morning. Trading was quickly halted in Berkshire’s A shares, as well as in Barrick Gold and NuScale Power which had also shown dramatic falls.
Barrick and NuScale have since resumed trading. It is unclear exactly how many stocks were impacted overall by the technical issue.
There were less than 4,000 recorded trades on the day for Berkshire’s A-class shares when trading was halted. Trading continued normally in Berkshire’s B-class shares, which were down less than 1% Monday morning.
Issue traced back to data feed from Consolidated Tape Association
The NYSE said shortly after 11am ET that the problems stemmed from incorrect price bands published by the Consolidated Tape Association (CTA). The CTA provides real-time stock quotes to major exchanges and had reported an earlier failure Monday that caused it to switch to a backup system.
The trading halts did not appear to significantly impact the major market indexes. However, the issues are another reminder that exchanges and data providers are not immune to technology errors.
Other recent examples include a one-hour freeze for CME index data feeds last week and a Nasdaq system error in December that led to some canceled orders. The NYSE also had issues in January when some opening stock auctions failed.
Berkshire’s high share prices
On normal trading days, Berkshire’s original Class A shares carry one of the highest price tags on Wall Street. Last week each Class A share sold for about $450,000 – more than the median price of a U.S. home.
The high per-share prices exist because Buffett has never split Berkshire’s stock, wanting to attract long-term oriented investors. He has said many shareholders use the stock as a type of savings account.
In 1996 Berkshire issued the more affordable Class B shares, priced at 1/30th of a Class A share, to cater to smaller investors.
Buffett remains Berkshire’s largest shareholder, owning over 38% of Class A shares. The legendary investor has pledged to give away his Berkshire fortune amassed since taking over the company in 1965.
