Warren Buffett's Berkshire Hathaway 'Broke' Nasdaq Recently — Here's What You Need to Know
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The trading platform stopped broadcasting their prices, and there is currently no information about the shares on Nasdaq's website.
Earlier this week, Buffet's company closed its listing at a price of $421,420 per share, with all signs pointing toward an upward trend. Although it was excellent news for the tycoon and investors, the increase put Nasdaq on alert about the arrival of what the Wall Street Journal calls the "stock version" of the 'effect 2000.'
Source: Nasdaq.com .
Currently, the stock exchange's computers are configured to store a maximum price of $4,294,967,296 because its algorithm saves stock prices as a 32-bit number, which takes up less memory and makes the software more efficient.In this format, the highest possible number is 2 ^ 32 -1, or 4,294,967,295, according to Gizmodo. But since Nasdaq records prices to four decimal places, the largest figure it can store is the one mentioned earlier.
This was not a problem until Berkshire Hathaway's Class A shares reached and exceeded that number. By Thursday, those shares reached $432,035.50, according to Yahoo Finance.
Source: Yahoo Finances .
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There has been no data on the shares from Nasdaq's website since Wednesday afternoon, when they closed with a price of $424,840 per share.
Source: Nasdaq.com .
For its part, the stock market operator IEX Group Inc. stopped accepting investor orders for the shares "due to an internal price limitation within the trading system."
The New York Stock Exchange, where Berkshire is also listed, says it will not be affected by the rise in the company's price per share or by any similar increases.
Warren Buffet Refuses to Divide His Company Stock
The 90-year-old mogul is currently the sixth-richest person on the planet, with a fortune of $108.4 billion, according to the Forbes Billionaires Index.
Despite the issue posed by Nasdaq, Buffet is not willing to split his company stocks. That's why he created Class B shares, which have traded at a price of $280. The billionaire is so firm on his position that he has even signed birthday cards with the message "May you live until Berkshire is divided."
Right now, the company with the second highest price per share is homebuilder NVR Inc. At Wednesday's close, its share was trading at a price of $5,142.42 — still a long way from catching up with Berkshire or "breaking" Nasdaq.