Anyone who panicked when they saw the Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) share price decline this morning can relax. When trading began today, the New York Stock Exchange showed that BRK-A stock had mysteriously plunged almost 100% despite no negative catalysts. This led to a trading halt for shares of Warren Buffett’s company.
Shares of Barrick Gold (NYSE:GOLD) experienced a similar phenomenon. But according to the NYSE, the share prices it showed were due to a technical glitch and had nothing to do with the actual price action. Trading has since resumed for both companies.
What’s Happening With BRK-A Stock?
For a company as strong as Berkshire Hathaway to suddenly drop 99% with no breaking news catalysts would be highly unusual. A pillar of the U.S. financial system, the conglomerate has stood the test of time, consistently delivering stable returns and shaking off market turbulence. BRK-A stock is often ranked among recession-resistant companies — and for good reason.
When we consider its history and strength, a technical glitch is by far the most likely explanation for this morning’s false declines. CNBC provided context on the event:
“The NYSE said that the problems stemmed from the price-bands published by the Consolidated Tape Association, the organization used by major exchanges to jointly provide real-time stock quotes. The NYSE said at roughly 11:45 a.m. ET that the issues had been resolved and trading was back to normal.”
Moments like these are a good reminder not to panic when a stock mysteriously falls. If price action seems too strange to be real, it just may be. Technical malfunctions can happen any day.
Now, though, the NYSE has corrected the error and BRK-A stock is back to trading at its typical levels. While shares remain in the red today, they are currently on an upward trajectory. Meanwhile, GOLD stock is already back in the green.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
