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Description: Stock splits don’t change the value of a company. But a lower share price for Warren Buffett’s firm (and other triple-digit stocks) could attract more investors.

Source: CNNMoney.com

Date: 11/06/2009

Link:  http://money.cnn.com/2009/11/06/markets/thebuzz/index.htm?postversion=2009110616

Questions for discussion:

  • What are the reasons offered for creating stock splits? 
  • What do you think motivated the decision to create a stock split of this magnitude at Berkshire Hathaway?  Explain your answer.
  • How might Buffett`s decision to split the stock be related to the acquisition of the Burlington Northern Santa Fe railroad?

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