What Is the Berkshire Hathaway Stock Split?


Quick Answer

The most recent Berkshire Hathaway stock split took place in January 2010, for all class B shares. A 50-for-one stock split, this action reduced shares from roughly $3,500 a share to $60. Since then, Warren Buffet has resisted suggestions to split shares to reduce share prices.

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Warren Buffet, well-known financier and Wall Street mogul, founded Berkshire Hathaway in the 1960s, and the holding company has seen solid performance since its inception. In August 2014, Berkshire Hathaway shares reached a record high, trading at over $200,000 per share. As of January 28, 2015, prices have been recorded as high as $229,000. Performance for class A shares in 2014 was over 13 percent, outpacing the DJIA and the S&P 500. Historically, Warren Buffet has proclaimed a dislike for stock splits and, despite the extremely high split in 2010, has maintained stock quantities consistently over time.

A stock split, also known as a forward stock split, is a financial tool designed to increase the number of shares a company has issued without changing the total value of all shares. When a stock split occurs, the value of each individual share of stock is reduced in proportion to the addition of new shares. Companies generally issue stock splits when stock prices grow too high for a standard investor. By splitting stock and reducing costs per share, companies can attract a greater number of shareholders.

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