“Warren Buffett’s BERKSHIRE HATHAWAY A shares have risen above $421,000, and the market is still optimistic about the stock, these phenomena have raised questions.
The Wall Street Journal reported that BERKSHIRE A shares have approached the upper limit of the numbers that can be stored by the exchange’s common digital processing method of computers, and the upper limit of the numbers that can be processed by Nasdaq’s computers is $429,496.7295. Nasdaq on Tuesday suspended the provision of Poxia A share price through several popular data dynamics, the company is working to complete an upgrade later this month to resolve the problem. Nasdaq said it will suspend publication of stock prices above 98 percent of the threshold until the upgrade is completed.
On the other hand, the same exchange operator, iex Group, also said in March that it would stop accepting orders for Pocahontas A shares from investors because of internal price restrictions in the trading system. Pocahontas A shares closed up 0.34% on Tuesday at $420,420, up more than 20% this year.
Nasdaq and some other market operators to use 32-bit streamlined computer format to record share prices is the crux of the problem, the use of this format, the upper limit of the number of 2 of 32 minus 1, that is, 4294967295. due to the storage of share prices are often counted to the fourth decimal point, the upper limit of the share price of $ 420,9496.7295.
All other US stock prices are currently much lower than Pocahontas A shares, so it is understandable why Nasdaq and iex system engineers chose the 32-digit number format. Currently the 2nd highest priced company in the US is home builder NVR, with NVR shares trading at just over $5,100.
Buffett’s refusal to spin off Pocahontas A shares over the past few decades has been the root of the problem, and Buffett once wrote “May you live to see the Pocahontas spin-off” on a birthday card to a friend. Buffett has told Pocahontas shareholders that depressing the stock price would attract unsophisticated short term investors.
However, Berkshire is already offering lower-priced B shares, a move that has led to an expansion of the company’s investor base. In addition, many brokerages now offer odd-lot trading, allowing investors to buy Pocahontas shares at low prices.