Berkshire Anne Hathaway MAR 18 2011
When actress Anne Hathaway is in the news, shares of Warren Buffett's Berkshire Hathaway seem to go up in price.
Companies are trying to "correlate everything against everything," he explained, and if they find something that they think will work time and again, they'll try it out. The interesting, thing, though, is that it's all statistics, removed from the real world. It's not as if a hedge fund's computers would spit the trading strategy as a sentence: "When Hathway news increases, buy Berkshire Hathaway." In fact, traders won't always know why their algorithms are doing what they're doing. They just see that it's found some correlation and it's betting on Buffet's company.