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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?


To: Magnatizer who wrote (5544)6/2/1998 9:43:00 PM
From: milesofstyles  Read Replies (1) | Respond to of 29382
 
not sure what you mean in terms of small vs large groups...the study is not a recommendation not to split, but what the returns one could expect as a result of the split. the study only tests stocks that split, divided into two categories, one that increased dividends vs ones that did not.



To: Magnatizer who wrote (5544)6/2/1998 9:47:00 PM
From: Phil Jacobson  Read Replies (1) | Respond to of 29382
 
David,

FWIW, I tend to think splits don't matter. For every additional buyer you get someone who can also sell when bad news or a shaky market hits. I've actually got 20 shares of WPO and it's sailing right through the ups and downs of the volatility that has pounded my other stocks this past month. I didn't want to get it but my wife thinks of Katherine Graham as a surrogate mom or something so I bought it to get her off my back. And it's been a terrific investment.

Wouldn't the best way to resolve this just be to look at P/E and other ratios for Berkshire Hathaway vs. other investment companies? WPO vs. Time Warner and others like that? I actually read something on TheStreet.com once that showed how BRK A was overvalued by at least 50% because of Warren hero worship. Don't have the time to look it up but the valuation measures showed it was absurdly high...and that was $16,000 per share ago!!

Phil