“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/
Related posts:
Wendy McElroy: The Competitive Provision of Security
Detlev Schlichter: “Watching your money disappear” – Speech to senior representatives of the UK pens...
Now That Hybrids Have Become Popular…
Ruling Allows Officials to Seize Your House Because It’s ‘Ugly and Dumb’
Jeffrey Tucker: Why Imagining Freedom Is Essential
Stefan Molyneux: The Truth About Obamacare
Chris Hedges: The Treason of the Intellectuals
"Gun Violence": The "National Conversation" We Won't Have
Secrets and Lies of the Bailout
“Why did you shoot me? I was reading a book”: The new warrior cop is out of control
Paul Craig Roberts: Humanity Is Drowning In Washington’s Criminality
Alfred McCoy: It's About Blackmail, Not National Security
MIT Economist’s Audacious Paper on Economic Climate Models
An open letter to marijuana prohibitionists and so-called third-way-ers
The case against cronies: Libertarians must stand up to corporate greed