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Technology Stocks : Dell Technologies Inc.

DELL 133.35

+0.1%

Nov 28 9:30 AM EST

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To: Chuzzlewit who wrote (97348)	2/11/1999 3:27:00 PM
From: GVTucker	Read Replies (2) of 176387

First of all, all of the split advocates can really only state one study that supports their contention that a split stock continues to perform well--a study by Ikenberry at Yale. And Ikenberry's study is flawed, IMO, because it doesn't adjust its database for a number of pertinent factors. There are far more studies that verify what is more logical--that a split is irrelevant to future performance. Even the current 'fad' of buying stocks on a split announcement has proven to be a very short lived effect, with no performance effect when more than a 1 day time horizon is measured. BTW, regarding this statement:<<If a split is so important, could you explain why BRK.A which has never split, trades at a premium to the companies it owns (whose stock does split)>> This statement is really a little deceptive, because BRK should trade at a premium to the public companies it owns, Buffett or no Buffett, because BRK also owns a large number on non-publicly traded companies. When private market value of those companies is included, BRK trades about where it should trade.

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