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