Quote:
Originally Posted by Hog's Gone Fishin
Legit question??? Why don't companies like that do a stock split to get the shares back to a reasonable price? I know percentage is percentage but most people won't buy a 5000 dollar share because that's all they have to invest.
|
I recall reading once that Warren Buffet would never do a stock split on Berkshire Hathaway because it apparently costs some money to do it and he viewed it as an unnecessary expense. I would agree that it does price some people out when the stock gets to a high dollar amount like $100,000+ a share for Berkshire. (Buffet eventually started a different class of stock at a lower price, but I don't know if that was a cheaper option or if there was some other reason.)