What caused the 99.7% plunge in Buffett's company in a short period of time?
Shortly after the opening of the U.S. stock market tonight, the stock price of Berkshire Hathaway, a company owned by the famous "stock god" Buffett, plummeted by 99.7%, from the closing price of $627,400 last Friday to $185.1, which shocked the market. Many people are worried that the company will "explode". However, Bloomberg quickly issued a statement to clarify that the stock price plunge was due to technical reasons.
According to Bloomberg, there was an obvious malfunction in the operator of the New York Stock Exchange, which caused the suspension of volatility trading of about a dozen companies shortly after the opening, including Chipotle Mexican Grill Inc. and Abbott Laboratories. Berkshire Hathaway caused panic in the market because it was highly concerned by market traders.
In fact, this time it affected the stocks of more than a dozen companies. The New York Stock Exchange called it a technical problem, but the head of the exchange refused to disclose any information to the outside world.
This is the second technical problem fluctuation in the U.S. stock market since the U.S. stock market switched from T+2 to T+1 transaction settlement last week. Yes, you heard it right, this is the second time. Just last Thursday, the real-time pricing of the largest US stock index was stopped because the index provider S&P Dow Jones Indices had trouble disseminating information, but this failure did not affect individual stocks and only caused minor interference, which we actually did not find abnormal.
The most terrible reason for this "technical" failure (let's call it a technical failure for now) is not the plunge in Berkshire Hathaway's stock price, but the fact that transactions actually occurred after the plunge to 185.1. It is estimated that other companies' stock prices have also encountered such problems. Although the trading of these companies has been suspended, it is unknown whether the subsequent data rollback will bring more trouble.
Views of various analysts:
Some analysts have cautiously mentioned risk awareness, believing that in less than a week after the US stock market changed its settlement date, continuous failures may cause greater chaos to the US stock market and even Wall Street.
Personal opinion:
The change of US stock settlement from T+2 to T+1 has undoubtedly released the market liquidity faster, but with the increase in liquidity and trading volume, data pressure will also be greater.Will the frequent technical problems in the US stock market make more traders wary of the risk of "overheating" in the US stock market?
The technical problems in the US stock market last Thursday did not cause much volatility, but the mainstream media did not disclose it. This is a bit strange. If you have confidence in yourself, you don't have to be afraid. On the contrary, choosing to publish information after causing a greater impact for the second time is a bit confusing.
In any case, if it is determined that the abnormal market is caused by technical problems, a large amount of related data will inevitably be rolled back. As for the risks, everyone can consider it by themselves. This is just a bold guess and has not been verified yet.
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