I just received a report on a stock that's supposed to model the Berkshire-Hathaway method, whatever that is.
It is MKL and it closed today at about $447.
One of it's competitors is AIG and they closed around $52 today.
What is the thought/idea/strategy/whatever behind these stocks that never split and their price keeps going up? The B-H stock was over $4K when I looked a few weeks ago.
Berkshire B was obviously $4k. That's what the poor people buy. Rich people buy Berkshire A.
I read somewhere that Warren Buffet won't split BH because he thinks a lower nominal cost makes the stock price more volatile.
I don't know if that author was for real or made it up though...
Buffet is what's known as a "value investor" he's styled him self after Benjamin Graham. I've had Graham's book sitting on my nightstand for like a year now. I really need to start reading it.
Here's a good article explaining what Buffet's style is:
well the theory behind not splitting is that it keeps regular investors away, hence avoids the volatitlity in the stock price
and is less liquid and less shares floating around