{"id":274874,"date":"2010-02-03T17:19:00","date_gmt":"2010-02-03T22:19:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:390936"},"modified":"2010-02-03T17:19:00","modified_gmt":"2010-02-03T22:19:00","slug":"possible-stock-splits-on-the-horizon","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/274874","title":{"rendered":"Possible stock splits on the horizon"},"content":{"rendered":"<p>The B shares of <a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=BRK.B&amp;id=255747\" >Berkshire Hathaway Inc. <\/a>have had a nice run since a 50-for-1 stock split reduced their price from the US$3,500-a-share neighborhood to the far more affordable level of around US$70 a share. While there are many good reasons for the stock\u2019s increase, don\u2019t discount the impact of dollar illusion. <\/p>\n<p>Quite simply, a stock that\u2019s going for the price of a couple of nice bottles of wine sounds like a much better deal than one that costs as much as a vacation. The value on a dollar-for-dollar basis is exactly the same, of course\u2014but bringing the stock price under $100 makes it seem like nearly an impulse buy.<\/p>\n<p>The question now is whether other companies might take a page from Warren Buffett\u2019s book and do their own stock splits. One candidate would be <a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=FFH&amp;id=97828\" >Fairfax Financial Holdings Ltd.<\/a> of Toronto. Its shares are trading around $370 apiece. Splitting them, say, five for one would bring them down to around $75 each.<\/p>\n<p><a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=AAPL&amp;id=253929\" >Apple Inc.<\/a> would be another candidate. It\u2019s selling for US$200 a share. Jeffrey Miller, a money manager with NewArc Investments Inc., believes Apple deserves a much <a href=\"http:\/\/oldprof.typepad.com\/a_dash_of_insight\/2010\/02\/embracing-a-good-idea.html\" >higher share price.<\/a> He thinks that investors are balking at paying more because of the number of dollars involved. He suggests splitting the stock, perhaps 10 for 1. \u201cIf this were a $20 stock, it would soon be a $30 stock,\u201d he declares.<br \/>&nbsp;<br \/><i>Freelance business journalist Ian McGugan blogs for the Financial Post.<\/i> <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/np\/aggbug.aspx?PostID=390936\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The B shares of Berkshire Hathaway Inc. have had a nice run since a 50-for-1 stock split reduced their price from the US$3,500-a-share neighborhood to the far more affordable level of around US$70 a share. While there are many good reasons for the stock\u2019s increase, don\u2019t discount the impact of dollar illusion. Quite simply, a [&hellip;]<\/p>\n","protected":false},"author":4060,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-274874","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/274874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4060"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=274874"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/274874\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=274874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=274874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=274874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}