Berkshire Hathaway soars
B shares are seeing high volume today after news that the company will join the S&P 500.
Traders are heavy on the shares after the announcement that Berkshire will become a member of the S&P 100 and S&P 500 indexes, replacing Burlington Northern Santa Fe (BNI).
Warren Buffett's Berkshire is buying the railroad for $100 a share in cash and stock. It split its class B shares 50-to-1 to make it easier to issue stock to Burlington Northern shareholders, according to Dow Jones.
Now Berkshire is one of the 10 largest U.S. companies, with a market cap of nearly $170 billion, reports the Bespoke Investment Group.
Expect Berkshire's entry to cause some short-term havoc, Bespoke reports. That's because it will likely weight about 1.1% in the S&P 500 when it is added. That means index managers will have to make room for Berkshire by selling about 1.1% of their holdings in the index's remaining 498 stocks.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.