Friday, February 12, 2010

Warren Buffett's Berkshire Hathaway Joining S&P 500

For less than $100, anyone can now ride on the coattails of Warren Buffett, founder and head of Berkshire Hathaway Inc. (BRK-A) (BRK-B), the top performing investment company. Prior to the 50 to 1 split of the B shares recently, the stock was off limits to many investors. And for many of the investors to which the stock was on limits, even the B shares at over $3500 per share was too high priced to tie up much money with.

Now the company is joining the Standard & Poor's 500 Index, setting off a buying spree. (Some investors think that when it is announced that a company will be joining the S&P 500, that the price will rise because of all the buying from index ETFs and funds.) Ironically, the credit rating for Berkshire Hathaway was just cut by Standard & Poor's from AAA to AA+.

You can find more info on Berkshire Hathaway and other very high priced shares at WallStreetNewsNetwork.com.

As of this morning, the B shares are up over half a percent, whereas the S&P 500 is down 1.1%.

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