Stock Split Watch: Is Berkshire Hathaway Next?
Prolific investor Warren Buffett has never split his company's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) Class A shares, and as a result, they recently traded for over $540,000 per share. While Berkshire's Class B shares are more affordable to retail investors -- they trade at roughly $360 per share -- that price can still be prohibitive to some.
So let's look at what happens when a company splits its stock and whether Berkshire Hathaway, as a nearly $800 billion holding company with a diversified portfolio of businesses and stocks, might consider this move in the near term.
A stock split is a corporate action in which a company increases the number of its outstanding shares by dividing each existing share into multiple new shares without changing its overall market capitalization. In the event of a stock split, your investment remains unaltered, with only the number of shares being adjusted.
Source Fool.com
