Exactly - If JNJ had never split its shares the price would be over $100,000 per share and eliminate the McBiter's and Woogly's of the world from ever owing it. But by splitting the stock, it makes it affordable and attractive for the individual investor thus widening the investor pool. With more investors wanting the stock the price will increase.
Hey McBiter and woogly - did you see where MasterCard announced a 10 for 1 stock split and the stock price jumped more then 4% overnite on a down day on the market. Is that just a coincidence? or perhaps stock splits do add value to the stock price!
Thanks for the bone. But actually I already have 2 vanguard Index funds in my 401k. One tracks the S&P 500 and the other tracks the Russell 3000.. Yep pretty basic stuff.
You sold SAN for a 40% gain. Is that 40% before or after capital gains taxes/commissions (if any). Which of HD, VRNT, WFC,DEO and DE would you recommend buying today? Any thoughts on Gilead (GILD),
Hey Biter .Now I am curious... How is Banco and VTI doing these days ? What other stocks are you tracking? Do you no anything about Gilead (GILD)
HI McBITER!! LOL!! I see your still obsessing over me outsmarting you and out investing you! I figured after nine months even you would have given up by now!! LOL!!
That's funny that you quote an article in the WSJ because the article I read in WSJ states.
"There is hard evidence that companies who split their stocks have outperformed their peers later.
Eight of the 11 S&P 500 companies that have split their stock this year have since outperformed their peers and have beaten their benchmark index by 20 to 63 percentage points as of the end of October."
"Companies use stock splits to lower their share price and make the stock more affordable and attractive for individual investors(without stock splits JNJ price would be over 155,000 per share and at that price would prevent small fish like you from ever owning it). Splits also can make the shares easier to trade and make employee stock grants more attractive,"
Biter I hope you enjoy your Holidays and have a Safe New Year!!
Your only Friend,