Are soon-to-be split Berkshire shares a good buy?
By Lilla Zuill
NEW YORK (Reuters) - Billionaire Warren Buffett surprised investors on Tuesday when he backtracked on a long-standing aversion to splitting the stock of his company, Berkshire Hathaway (BRKa.N: Quote, Profile, Research) (BRKb.N: Quote, Profile, Research).
In a letter to shareholders in 1983, Buffett said splitting the stock could attract "inferior" investors, and had stuck to that tune until now.
On Tuesday, the company announced plans for a 50-to-1 stock split, to apply to Berkshire's "B" shares, and lowering the price of the stock from $3,325.35 at Tuesday's close, to roughly $67 a share, potentially opening the floodgates to new investors.
The company's A shares, which closed at $100,450 apiece on Tuesday, will not be subject to the stock split.
The split was announced in tandem with Berkshire reaching a $36 billion deal to buy Burlington Northern (BNI.N: Quote, Profile, Research) railroad.
Is this a good time to buy Berkshire stock, especially given the lower post-split price of the "B" shares? Three investment advisers weigh in:
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