Considering Buying BRK.B Shares After a 99% Drop:
Potential Risks:
1. Invalid Trade: If the drop is due to a malfunction or error, trades might be canceled, leaving buyers without shares or funds tied up.
2 Market Impact: A sudden drop could cause significant market volatility and further trading halts or investigations.
Potential Rewards:
1. Temporary Opportunity: If the drop is a temporary glitch, buying shares at an extremely low price could yield significant returns if trades are honored.
2. Fundamental Value: Berkshire Hathaway (BRK) is fundamentally strong, and a price drop of this magnitude would typically be seen as a buying opportunity if valid.
Conclusion:
Due Diligence: Verify the cause of the drop and monitor news from regulatory bodies and exchanges.Risk Management: Be prepared for the possibility that trades may be reversed and only invest what you can afford to potentially lose in this scenario.
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