Berkshire Hathaway has one of the, if not, the highest priced shares of stock (in dollars not value) selling at a staggering $139,000. This is partly due to the third richest man in the world, Warren Buffett, commitment never to split the stock. Buffett hopes that, “Berkshire’s shareholders think of themselves as partners in the company who are interested in its long-term prospects, not the movement of its share price.”
Berkshire shareholders want a split to make shares ‘more affordable and liquid.” Forbes noted that, “The closest Berkshire has come to a stock split is when Buffett decided in 1996 to issue Class B shares and establish a procedure allowing owners of a Class A share to convert one Class A share to 30 Class B shares.” This was for smaller investors to take a piece of Warren’s pie; Class B Shares now are at the price of $4,600
As for now The Securities and Exchange Commission has allowed for such a proposal to be left off its proxy statement because the proposal calls for adjusting the value of Class A shares to a specific value.
Further Reading: Who is Warren Buffett? What is Berkshire Hathaway? How Rich is Warren Buffett?
Source: Forbes
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