Anyone betting that last week's 50-for-1 stock split of Berkshire Hathaway's Class B shares would lead to Warren Buffett joining the benchmark S&P 500 stock index .. is absolutely right and making some money tonight.
S&P says tonight (Tuesday) that Berkshire will replace Burlington Northern Santa Fe in both the S&P 500 and the more exclusive S&P 100.
Berkshire, of course, is acquiring BNSF in a deal expected to close next month. When that happens, the railroad itself will no longer be publicly traded.
Not surprisingly, Berkshire B shares were up 8 percent in after-hours trading minutes after the news hit .. rising to $73.50 from today's 4p ET close of $68.06.
The higher-priced Class A shares were up 5 percent to $107,000 from today's 4p ET close of $102,010.
The big index funds that try to mimic the returns of the S&P 500 will now need to buy Berkshire Class B shares, boosting demand for the stock.