The legendary investor Warren Buffett has built one of the most valuable companies in the world, yet Berkshire Hathaway’s Class A shares have never been split—not even once. While most companies zealously split their stock when prices climb too high, Buffett deliberately keeps his shares expensive.
Class A shares often trade for over $500,000 each, making them some of the priciest stocks on Earth. This sky-high price tag isn’t an accident or oversight. Buffett uses it as a clever filter to attract the right kind of investors.
He wants shareholders who think like business owners, not day traders hunting for quick profits. When a single share costs more than most people’s homes, it naturally discourages impulsive buying and selling.
Many investors misunderstand stock splits completely. They think splits magically create value or signal good company performance. In reality, splits are like breaking a twenty-dollar bill into two tens—you still have the same amount of money.
Companies often split stocks to make them appear more affordable, but this can attract speculators who focus on short-term price movements rather than long-term business success. These speculative traders often engage in after-hours trading when volatility tends to be higher and fewer participants are active.
Buffett did create Class B shares in 1996, but only reluctantly. These shares traded at one-thirtieth the price of Class A shares, making Berkshire ownership accessible to smaller investors.
He later split the Class B shares 50-for-1 in 2010 during the Burlington Northern Santa Fe Railway acquisition. This move helped Berkshire join the S&P 500 index by increasing trading liquidity.
The Class B shares serve an important purpose while preserving Buffett’s philosophy. They allow broader participation without encouraging the speculative trading that stock splits often promote.
Class A shares remain unconverted, maintaining their exclusive status and high price barrier. Interestingly, Buffett has been a net-seller for seven consecutive quarters, demonstrating his selective approach to investments. Buffett’s market capitalization exceeds $1 trillion as of 2025, demonstrating the effectiveness of his unconventional approach.
Buffett believes high share prices foster patient, rational decision-making. When buying a stock requires serious financial commitment, investors tend to research more carefully and hold longer.
This creates a stable shareholder base aligned with the company’s long-term success rather than quarterly earnings fluctuations.
His approach challenges conventional wisdom but has produced remarkable results for patient investors willing to think differently.
