Warren Buffett is not only one of the richest people to have ever lived in the USA but he is the most famous and successful stock market investor of all time. His company, Berkshire Hathaway, was started decades ago when he first got into the stock market investments business. Those who bought shares in his company and held onto them all became fabulously wealthy just by letting Warren Buffett use their money to invest his in own select stock portfolio.
The problem for most people, however, was that as they got more expensive shares in Berkshire Hathaway did not split and divide the way most other high-flying stocks do. So the price per share kept going up and average investors could not afford to buy even a single share. The stock that sold for $1,000 a share in the 1980s, for example, sold for about $10,000 a share in 2000. The class A or preferred shares now sell for more than $100,000 per share.
But this year Berkshire Hathaway is offering less expensive shares. Those who want to can get into the Warren Buffett investment company as shareholders for prices that are much more affordable since the company announced a 50 for one stock split in its “B” class shares. That means that the cost per share was divided by 50, so it became 50 times cheaper to buy into Berkshire Hathaway. As soon as the split happened earlier in the year the stock started selling for around $50 or $55.
By March of 2010 it had hit a price closer to $85, so it is already doing quite well for those who bought earlier in the year. But judging from the history of Warren Buffett’s other stock offerings, this newly split stock will likely continue to rise in price until it, too, is selling for prices that are beyond the reach of ordinary investors. Those interested in getting into the Warren Buffett stock to add it to their personal stock portfolio are advised to act soon because the opportunity may not last much longer.
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