A Guide to Stock Splits

“There is an ongoing debate over whether stock splits are a plus for investors. Warren Buffett is one detractor. The class A shares of his holding company, Berkshire Hathaway, have never split and currently trade at a lofty $204,500. That’s because the Oracle of Omaha prefers investors who see themselves as business owners who plan to stick around for a long time, not simply traders. A split would attract ‘people who buy for non-value reasons’ and ‘are likely to sell for non-value reasons,’ Buffett wrote in his 1983 letter to shareholders. However, some studies have found that companies that split their shares tend to outperform their peers.”

http://www.investingdaily.com/19366/a-guide-to-stock-splits/