Thursday, January 21, 2010

Berkshire Hathaway 50-1 split

I am interested in the BRK.B stock of Bershire Hathaway since its split yesterday of 50-1. Not sure when options will start trading on it but I am going to keep an eye out. Because it has the name Warren Buffet behind it I can see many retail investors trying to get in now that the price is at a more affordable level.



  1. Well I believe the reason for the split is just like you said, so the retail investors can play too. Most companies split their stock after it's stayed above $100 for a period of time, simply because that is the psychological level at which people think it's too expensive for them to buy, so they'll buy something similar for $20 with the same market cap and they feel that's a better deal somehow.

    I thought I heard they listed options on this a while back already. Maybe that was the class A share, or maybe I just read that they are going to be offering it on the class B's but it just hasn't started trading yet.