2 Monster Warren Buffett Stock-Split Stocks to Buy Right Now
Warren Buffett may not be a fan of stock splits when it comes to some stock classes of his own company, Berkshire Hathaway, but several notable names have been going down this route recently.
A split reduces the dollar value of a company's stock and leads to an increase in the number of outstanding shares -- a purely cosmetic move as it doesn't do anything to boost the intrinsic value of a company. However, companies sometimes turn to stock splits to make the shares more attractive to a larger pool of retail investors. It is believed that the increased accessibility following a split can boost the retail demand for a company's shares, and thereby lead to an increase in the stock price.
Warren Buffett's top holding, Apple (NASDAQ: AAPL), executed a stock split in August 2020. Amazon (NASDAQ: AMZN) is another Warren Buffett holding whose stock split went into effect on June 6. Investors can still buy these stock-split plays from Warren Buffett's portfolio at attractive valuations right now. Let's see why that could turn out to be a smart long-term move.
Source Fool.com
