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Robinhood behind surge in Berkshire Hathaway trade volume

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Yahoo Finance's Brian Cheung breaks down a chart of trade volume for Berkshire Hathaway stock, showing that Robinhood was behind a spike in volume in early 2021.

Video Transcript

[MUSIC PLAYING]

BRAIN CHEUNG: Talking about stocks that Robinhooders love, you probably think of GameStop and AMC, not a company run by some nonagenarians, which brings us to our chart of the day, which shows the February 2021 jump. Check this out. In volumes, this is not price, volume of trading in class A shares of Warren Buffett and Charlie Munger's Berkshire Hathaway. A study by Three Academics suggesting that tick up that we saw has to do with how Robinhood reports fractional trades.

Now, of course, the stock was attracted to buy in pieces because one share of Berkshire cost a few hundred thousand dollars to buy just one share. So Akiko, again, this is just a study. They're just saying, well, this is probably what led to that. And by the way, this did not coincide with a jump in the stock price. It just shows that there is a lot more volume in the trading of it because of that.

AKIKO FUJITA: Robinhood and Berkshire.

BRAIN CHEUNG: You never thought?

AKIKO FUJITA: Yeah, not two that I would have linked in one sentence.

BRAIN CHEUNG: But again, IT costs you $427,855 to buy one of these things, just one. But again, fractional shares, which you can do on Robinhood, and a lot of other platforms as well, big reason for why you had a lot of retail investors wanting to get in.

AKIKO FUJITA: That's an incredible number, every time I look at it. 420,000.

BRAIN CHEUNG: That's a lot of dollars.