Berkshire Hathaway Expected to Spilt Shares 50 for 1


Now here's an eye opener. Warren Buffet's Berkshire Hathaway (BRK.A) has decided to split its shares 50 for 1. This would drop the price of the company's cheapest stock down from about $3,247.00 per share to $65. The class A shares, never split, still trade at about $97,500.

Buffet has long opposed splitting the stock for fear that a lower share price would attract "inferior buyers." If the stock split is approved, it would attract a broader group of investors and even short term traders. It would make Berkshire (BRK.A) eligible for membership in the S & P 500 index.

Part of the motivation for the stock split is practical. Buffet needs wider participation to raise the needed capital for his purchase of Burlington Northern (BNI)

People who admire Buffet's philosophy now will be able to buy into the Berkshire mystique.

Would you buy Berkshire after the stock split?

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Last updated: February 10, 2012: 10:23 AM

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