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To: James R Mohr who wrote (5165)	3/26/1999 3:00:00 PM
From: Chuzzlewit	Respond to of 7342

James, I think many people confuse cause and effect. The reason that stocks split is the result of climbing stock prices, and the reason that stock prices climb is because of good execution. There is only one way, IMO, to distinguish between cause and effect. If stock splits tend to cause prices to climb higher then there should be a negative correlation between stock price and P/E. The fact of the matter is that no such correlation exists. That's why BRK can sell at over $75,000 and still have a very high multiple. Do you honestly believe that if the company split 5000 for 1 that you would end up with a secular upward shift in P/E? TTFN, CTC