Stock split ahead
Here is a good opportunity!
Identifying stock splits can be very profitable, not to mention the Microsoft case. If you had 100 stocks since the first split you would probably have around 28.000 Microsoft stocks today.
The consolidation of the price usually happens straight after the fall. There is no doubt that after this ‘natural drop’ on the shares price, the recovery would be a matter of time in solid companies.
Now is Berkshire Hathaway. The 79-year-old chairman have never split their stocks before. And as far as I am concerned about their operations, it might be a good turn.
Published on Tuesday, 3 Nov 2009 | 3:58 PM ET by Reuters:
If you always wanted to invest alongside Warren Buffett, but found it too expensive, you now have your chance. Buffett’s decision to conduct a 50-for-1 split of Class B shares of his Berkshire Hathaway lowers the price of entry for ordinary investors who long found it prohibitively costly to buy the stock.
The split is one piece of Berkshire’s $26 billion takeover of Burlington Northern Santa Fe, and is intended to make it easier for shareholders of the railroad who want to swap their shares for Berkshire stock to do so.
Berkshire Class B shares [BRK.B 3402.50 7.50 (+0.22%) ] closed Monday at $3,265. After a 50-for-1 split, they would cost just $65.30.
Class A shares [BRK.A 102149.00 --- UNCH (0) ] of Berkshire trade around 30 times the price of the Class B shares, or around $100,000, and are not being split.
The split will obviously need the approval of the other shareholders. Many experienced traders take the chance on stocks split, and there is one that I admire mostly for this ability: Lyn Summers.
Well, in the worst scenario, if you own Berkshire Hathaway shares, at least you will have “free passes” to the annual Berkshire gathering (the ‘Woodstock for Capitalists’) and if you are smart enough you can maybe get to know Mr. Buffet!
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