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Berkshire Hathaway Goes Into The S&P 500

After the close Berkshire Hathaway was added to the S&P 500. Is this a buying opportunity or is the run, done?

Since the news was announced on January 26th Berkshire B-shares have climbed about 10%.

As you might remember, Warren Buffett issued a 50-1 stock split last month in the Berskhire B’s to help Burlington shareholders dodge a big tax hit, as he acquired the railroad.

That split paved the way for the so-called baby B's to enter the S&P 500 on Friday because it sharply reduced the price of an individual share, making the stock more accessibly priced for general population.

Now that they're finally in, what must you know?

I think it’s a sign that Buffett is flip-flopping, says Gary Kaminsky. Buffett had always been committed to policies that didn't attract buyers with short term time horizons. I can’t help but wonder if we look back at this as a watershed moment for this stock.

I don’t see this as a flip-flop, counters Karen Finerman. Splitting the shares is simply a mathematical thing. Nothing more.


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Trader disclosure: On February 12, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (BTU), (NUE); Kaminsky Owns (LULU); Finerman's Firm Is Short (IJR), (MDY), (SPY), (MDY), (USO), (UNG); Finerman Owns (AAPL); Finerman's Firm And Finerman Own (CVS); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (MSFT); Finerman's Firm And Finerman Own (RIG); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm And Finerman Own (JPM); Finerman's Firm Owns (STJ); Finerman's Firm Owns (BSX); Terranova Owns (JPM), (RIMM), (IBM), (QCOM), (PALM), (GOOG), (EMC), (AAPL), (DELL), (MSFT); Terranova Is Long Oil Futures (Dec. 2010 Contracts, Dec. 2011 Contracts)

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