Berkshire’s Stock Split

Barron’s published my Letter to the Editor.

Berkshire’s Stock Split

To the Editor:
In Andy Serwer’s excellent discussion about the relative absence of stock splits in recent years, I would add two points (“Stock Prices Are Astronomical. How They Became So Costly,” Up & Down Wall Street, Feb. 16). First, buying round lots of 100 shares was very popular 40 years ago because of the existence of an “odd lot differential,” which resulted in shareholders paying higher commissions per share for the purchase or sale of fewer than 100 shares. Second, in addition to Berkshire Hathaway issuing lower-priced Class B shares in 1996, it also split its B shares 50-for-1 in 2010 as part of its acquisition of Burlington Northern. Thus, Berkshire’s Class B shares represent a 1,500:1 stock split relative to the Class A shares.