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Author: makfan Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 942  
Subject: Re: Why I think splits are good Date: 2/25/1999 2:13 AM
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If your young enough to think long term and pick the right stocks I don't think its to good to be true.
After all look at MF's AOL holding.


I can't recall the study, but I have read on more than one occasion that lower priced stocks tend to be more volatile. I think this might be why it seems like AOL always goes up $2.00, whether it is selling for $75 or $150 per share.

I think splits are bullish because it says that the people running the company think that the stock will continue to do well, but I don't think that splitting makes the stock more of a bargain (P/E ratios and all that don't change one bit due to a split, for instance). I also own a few class B shares of Berkshire, so I am not shut out by the price of a particular stock.

Other than the bullish psychology, I think splits are mostly a bookkeeping pain, since I keep records in both Quick and Excel and have to update them both (not to mention my Fool Portfolios online). :)
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