| | | when the price comes down they think its cheaper
Exactly. But it also depends on what the company wants. Berkshire Hathaway has never split its "A" shares, which currently trade near $110,000/share. The reason is that Warren Buffett hates speculators who trade in and out of shares. With typical trading volume in BRK.A of 30 or so shares a day, you don't find much trader (i.e., gambler) interest. The lower priced "B" shares also aren't that cheap, but they're designed to discourage traders from setting up exchange traded funds that hold shares similar to those held by Berkshire Hathaway. The average individual investor who wants part of the Berkshire Hathaway pie can buy the "B" shares.
Back in the old days (about 1981), when Berkshire had only one stock, which was selling around $300/share . . . . Need I say more?
Disclosure: I bought 10 of those old shares for my daughter just before she graduated from high school, with the intent that they might help her with a college loan. They paid for her college, graduate school, new home, and new car, with some still left over for her future.
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