You are not mistaken.

The tradings of Warren Buffett's stock Berkshire Hathaway was gargantuan in volume last Friday as a huge amount of convulsion was built up by the entire world.

It was really intense but at the same time, many experts predicted that such a scenario will happen.

If you had studied Economics, you should be familiar with the price elasticity of demand right?

In the past, the stock was definitely elastic (it's almost a prerogative to own it). Everyone wants it and the demand is definitely high. But the problem is that only a few could afford it because it was priced at a skyrocketing amount.

Now, it is so much cheaper, which in turn transforms the stock into an inelastic demand stock whereby any change of price will not be too much of a concern for other people now that it is cheap.

But this is a rather special case for Warren Buffett's stock. Even though it's priced at a way lower price than before (2% of the original price), people will still be scrutinizing its daily trading because it has the potential to rise to an all new high again!

As you can see, JDS Uniphase is still holding on to the top position with a total trade volume of $27.7 billion. Remember the 1990s Internet boom? Where the volume of chips, computers and processors surge like no one's business?

That was the period when technology stocks flew up the rooftop with a BANG!

What's ironic here is that Warren Buffett has never ever believe in technology stocks because he thinks that they are just a fad.

Which is to say, it is volatile and is not sustainable at all because it's way too fast paced and ambiguous.

If you had noticed, till now, Warren Buffett does not own a single technology stock.

He never really dwell much into the business of Intel or IBM if you realised.

Despite having a panoply of business, he's constantly scrutinizing the operations of every single business under him.

For instance, look at the recent drama (Kraft purchasing Cadbury) Irene Rosenfeld has created.

To be honest, Warren Buffett believes that she had overpaid Cadbury stockholders and that the interest of Kraft's shareholders has been damaged.

Nonetheless, Irene's confidence level has not been emasculated one bit as she bulldozed her proposal all the way through, for a total of 5 strenuous months.

This is a great proof of the fact that Warren never let any business he owns run wild.

What's so peculiar about him is that he always aim to be the biggest shareholder of a company he invest in so that he can manipulate the acquisitions in one way or another.

Afterall, the public never fails to relentlessly tag behind Warren Buffett in every single investment he made.

Now that they can own his stock, everyone must be delirious with joy because it is almost like a sure win lottery.

You bet on it and you are guranteed a profit.

It's better than investing in bonds!

Credits -cnn, -clamson, -investmentnz