Wall Street investors got a major scare on Monday morning. A technical problem on the New York Stock Exchange caused Berkshire Hathaway’s Class A shares, owned by Warren Buffett, they seem to have dropped 99.97 percent. It is a collapse only compatible with an almost complete dissolution of a company. And it was not just any company, but one of the most respected investment funds on the market.
It was not the only marketable security affected by the same problem. As a result of the unexplained declines, trading in Berkshire Hathaway shares was halted, as were those of Barrick Gold and Nuscale Power, which had also seen drastic declines.
The New York Stock Exchange reported at 11 a.m. in Buenos Aires that it was investigating a technical problem related to the upward and downward limitation bands, which are mechanisms to stop stocks in the event of excessive volatility.
There were fewer than 4,000 trades recorded on the day for Berkshire’s Class A shares when trading was halted. Trading continued in the class B shares, which were down less than 1% Monday morning. The movements did not appear to have an effect on the value of the main market indices.
On normal days, Berkshire’s original Class A shares have one of the highest prices on Wall Street. Last week, each sold for 45% more than the average price of a home in the US. Class A shares reached an all-time high of $634,440 on March 28.
This is because Buffett has never split the stock, as he wants to attract investment-oriented shareholders with long-term horizons. Ben Graham’s protégé has said that many Berkshire shareholders use his stock as a savings account.
Berkshire issued Class B shares in 1996 at a price equal to one-thirtieth of a Class A share to cater to small investors who want a small piece of Buffett’s return.
Buffett is Berkshire’s largest shareholder, owning more than 38% of the class A shares, according to FactSet. The “Oracle of Omaha” pledged to give away the fortune he built at Berkshire, the Omaha-based conglomerate that he began running in 1965.
Warren Buffett, known as the “Oracle of Omaha,” is one of the most iconic and respected figures in the world of investments and finance. Born on August 30, 1930 in Omaha, Nebraska, Buffett is the chairman and CEO of Berkshire Hathaway, a holding company with investments in a wide range of sectors. His investment style, focused on acquiring undervalued companies with strong fundamentals and long-term prospects, has allowed him to amass one of the largest fortunes in the world, and his focus on philanthropy has set a significant precedent in the area of responsibility. social.
From an early age, Warren showed a notable interest in business and investments. At age 11 he bought his first shares and, at age 13, he was already working as a newspaper delivery boy, using his earnings to invest in various opportunities. He graduated from the University of Nebraska and later completed a master’s degree in economics at Columbia University, where he studied under the famous economist Benjamin Graham, known as the “father of fundamental analysis.”
Buffett began his professional career at Benjamin Graham’s company, Graham-Newman Corp., where he learned the principles of value investing, an approach that seeks to invest in stocks that are trading below their intrinsic value. In 1956, he founded Buffett Partnership Ltd., and in 1965, he took control of Berkshire Hathaway, a then modest textile company, transforming it into a multinational giant.
Buffett’s approach is characterized by his patience and long-term perspective. Prefers to invest in companies with a durable competitive advantage, good management teams and reasonable pricess. Among his most notable investments are companies such as Coca-Cola, American Express, Apple and, more recently, large banks and technology firms.
Buffett’s ability to generate consistent returns has been exceptional. Over the years, Berkshire Hathaway has significantly outperformed the S&P 500 index, becoming a benchmark for investors around the world. His success has earned him numerous awards and recognitions, including being repeatedly included in Forbes magazine’s list of the richest people in the world.
Warren Buffett is also known for his commitment to philanthropy. In 2006, he announced his intention to donate 99% of his fortune to charitable causes, primarily through the Bill & Melinda Gates Foundation. This act of generosity has been an inspiring example in the business world and has led other billionaires to make similar promises. Buffett co-founded “The Giving Pledge” with Bill Gates, an initiative that invites the world’s richest to commit to donating the majority of their wealth to philanthropic causes.
Despite his immense wealth, Buffett is known for his frugal lifestyle and humility. He lives in the same house in Omaha that he bought in 1958 for $31,500 and is famous for his simple diet and modest habits. This pragmatic and no-nonsense approach to life and business has earned him great admiration.
Buffett is also an avid reader and believes strongly in the importance of knowledge and continuing education. He spends much of his day reading financial reports, books and articles to stay informed and make informed investment decisions.
