Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 172.94

+1.1%

Jan 2 3:59 PM EST

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To: Jeff Vayda who wrote (27301)	4/18/1999 10:17:00 AM
From: Art Bechhoefer	Read Replies (1) of 152472

Warren Buffett refuses to split Berkshire Hathaway stock (now selling around $75,000 per share) because he doesn't want short term trading and wants to encourage long term holdings. He was forced to issue some new shares, selling at a modest $2000 or so, to attract investors who otherwise were investing in mutual funds investing in Berkshire stock and/or its individual holdings. I think the principle that Buffett espouses is important: Let the price go high in order to discourage short term trading. Most companies believe that ENCOURAGING trading will lead to higher stock prices, so tend to split their stock in order to make it more attractive to a wider range of investors. The QUALCOMM split will probably have that effect, creating more upward pressure on the shares. I can't tell you how many times my clients ask me to suggest a cheap stock, say, under $10. They don't care if it has little or no intrinsic value, just as long as it's "cheap." Imagine their disappointment when I recommend QCOM as one of the cheapest in telecommunications technology.

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