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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (109238)	3/12/1999 12:42:00 PM
From: Kenneth Aird	Respond to of 176387

I could not agree more, however if Dell had never split, I would not be able to afford even one share. There is a point at which the affordability argument has some merit. Warren Buffet reluctantly created class B shares at 1/32 the value of regular shares of Berkshire Hathaway because people were planning to create a Berkshire index fund to allow small investors to participate. Warren did not want investors to pay someone management fees to buy his stock. Ken

To: Chuzzlewit who wrote (109238)	3/12/1999 12:52:00 PM
From: edamo	Read Replies (1) \| Respond to of 176387

chuzz..."re: stock splits..imbalance supply-demand equation" when do you think the "experts" will admit to a change in market dynamic that is so very different than even markets of twenty years ago...dell does not trade half the volume...or move by half the amount after each split...current markets which commonly trade 1b share days have no trouble absorbing new supply... perhaps these experts are the same economists that this week "speculated" that technology may be the reason for economic expansion, increased productivity, and inflation.... reminds me of the person who orders a pizza pie...he is asked..."do you want me to cut it in eight pieces?"....." no, just four...i could never eat eight pieces..." yours in inaneness...ed a.

To: Chuzzlewit who wrote (109238)	3/13/1999 1:55:00 AM
From: Bob Martin	Read Replies (1) \| Respond to of 176387

Chuzzlewit, Although I agree with your arguments about stock splits, there is one good reason for keeping the price down to where round lots are affordable. And that's for people who want to write options against their stocks. Options apply to lots of 100 shares. On another note, when things are taken to their ridiculous extreme (of course, I'm talking about BRK), liquidity does become a problem. Imagine you bought BRK for $3000 in the 80's (1 share), and it's now worth $65000. Great!! Now, something comes up and you need a few grand. Sorry, you've got to sell your one share, and generate a lot more capital gains than what is really necessary. So while I agree that many companies overdo the split thing, it is also silly to never split at all. Bob