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Author: Jeeves 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: 3/11/1999 3:23 AM
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TMFSelena writes:

<<But consider the alternative. If companies never split their stock, shares of stock like Coca-Cola
would probably stand at several hundred thousand dollars each. They would NOT be likely to still
be moving in $1 or $2 increments. Look at Warren Buffett's Berkshire Hathaway stock, as an
example. It's currently about $72,000 per share (class A). It moves up and down each day usually
by hundreds of dollars.>>

So, I got curious. As is turns out, the Coca-Cola website (http://www.thecoca-colacompany.com) is quite helpful. There have been ten stock splits since the company went public in 1919.* The Fool chart page has information on four of the: one 3-1, and three 2-1 splits.

Assuming all the unknown splits were 2-1, the current price per share would be $96,576 (as of trading close 3/10/99). Even a more conservative assumption of all 3-2 splits would give us a price per share of $41,391.

My guess is that fewer of us would be in the market if these kinds of stock valuations were common. The choices for the small investor would be few: buy new issues, buy slower performers, or don't invest.

But it would be interesting to read a daily post or two from the Motley Fool of that Bizarro land. "Today the Rule Breaker portfolio announces that in the next five days, will sell its share of Coca-Cola for the purchase of up to 98 shares of CSCO."**

- Jeeves

* The IPO of Coca-Cola ofered shares at $40 in 1919. A rough estimate in 1999 dollars would be $600/share.

** Reverse-figuring as above, a share of Cisco on 3/10/99 would be $10,020.
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