Berkshire Hathaway Shares' Misreported Plunge: A Lesson in Data Reliability

Visualize this scenario: you are the owner of a Berkshire Hathaway A share, valued at over $600,000. One day, you check online to discover its value has plummeted by 99%! This alarming situation did indeed occur, though it was not quite as dire as it seemed.

Berkshire Hathaway's False Alarm

When early trading data on June 3, 2024 showed that Berkshire Hathaway's A shares had dropped by a staggering 99.9%, confusion reigned. The information, indicating a nearly total loss in value, appeared across various quote services. However, these figures were the result of technical difficulties within the Consolidated Tape Association, the organization responsible for compiling and disseminating trading information to the public. Not only Berkshire Hathaway but also companies like NuScale Power and Barrick Gold were affected by the misreporting.

The glitch was addressed swiftly, trades of the affected shares were temporarily halted, and real values were restored to the tickers shortly after. The immediate plunge was a false signal, and Berkshire Hathay's A shares resumed their actual market value.

The Dangers of Blindly Trusting Data

This incident underlines the importance of skeptical analysis when it comes to market data. Can a stock renowned for reliability really lose almost all its value overnight? Generally, the answer is no. The recommended approach upon seeing such anomalies is to cross-verify with other data sources, check the B share class of the company if available, inspect the company's own announcements, and conduct an online search for recent news that might explain unusual shifts.

Data inaccuracies are not uncommon in stock market feeds. Dividend yields might be reported inaccurately following dividend adjustments or announcements of special one-time dividends. Stock splits can similarly send automated data systems into disarray.

Applying Critical Thinking Amidst Data Errors

Errors can inevitably infiltrate extensive datasets. When strange inconsistencies arise, stop and ask critical, simple questions. Consider whether dramatic changes in yield or stock value make sense in the context of known information. Quick investigation and sensible reasoning can prevent panic and provide clarity in the face of frightening, yet flawed, data.

Berkshire, Data, Trust