I see & sense NVidia (NVDA) & Chipotle Mexican Grill (CMG) made a Big Mistake by stock splits making their shares as numerous as the sand on the seashore, cheapen the *intrinsic value* per share & a company credibility onset.
Behold Berkshire Hattaway! Warren Buffet maximise the VALUE of the company & shareholders return. He understands
*Rarity is VALUE* or
*Play hard to get*
Result? BRK.A $680000 per share, BRK.B $450 per share more or less.
The higher The harder to get makes someone or something very special very valuable indeed. The Art of Dating?
I actually prefer Reverse Stock Splits. Why?
1. Reduced number of shares. The Rarity Factor.
2. Share price becomes higher minimise speculative bets or shorts. Who is insane enough to short BRK?
3. Makes a company looks credible & the management looks wise than greed
Just name 3 keys.
Nevertheless if a company needs to raise fund in growth stage, they have to issue more shares or sharing the pies with more people ie VC or public. But Warren Buffet has no issues with drawing multitudes investors to pour forth their money upon his head at all. Why? Read his Value Investing principles.
Integrity (Character) is most important to Warren Buffet. Next is Temperament or Emotions in check. Last is Intelligence.
Poppy
Modify on 2024-10-01 16:10
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very unusual idea