Berkshire Hathaway Shares Top $500K: Why Buffett Says He'll Never Split the Stock
Breaking News Lead:
Berkshire Hathaway shares have soared past $500,000 apiece, making it one of the most valuable companies in the world. Despite the high price, legendary investor Warren Buffett has repeatedly stated that he will never split the stock.
Stock Split History:
Berkshire Hathaway has had a long history of stock splits since going public in 1980. Here are some notable splits:
- 1980: 1-for-1 split
- 1983: 1-for-2 split
- 1986: 1-for-2 split
- 1989: 1-for-2 split
- 1996: 2-for-1 split
Buffett's Reasoning:
Buffett has consistently maintained that he opposes stock splits because:
- It does not affect intrinsic value: Buffett believes that splitting the stock does not change the underlying value of the company.
- It discourages long-term investment: Buffett wants investors to focus on the long-term performance of the company, rather than short-term price movements. A split can create the illusion of accessibility, which may encourage speculative trading.
- It reduces the influence of small shareholders: Buffett believes that small shareholders should have a meaningful voice in the company, and a split can dilute their ownership percentage.
The high share price of Berkshire Hathaway serves as a testament to the company's strong performance and the long-term investment philosophy of Warren Buffett.
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