I agree with Mr Buffet on a lot of things. In general, his view on stock splits is one of them. People get strange views of stock prices being "cheap". If you don't understand why a split doesn't really make a stock "cheaper" look at it this way: suppose I'm selling 100# bags of potatoes for $10 each. Does the intrinsic value of yhe potatoes change if I "split" and start selling them in 10# bags for $1 each? No, they're the same price per unit of potato. It works the same way for businesses. A business is worth $x, a stock is a portion of ownership. Cutting smaller portions is like selling smaller bags of potatoes.
Of course, BRK is also the classic counter-example. They're selling 432,000# bags of potatoes. Once the unit size becomes too large to handle, you have practical issues to consider.
Stocks on the low side can have similar issues. "Cheap" stocks aren't suddenly good performing ones if you do a reverse split and tack a couple zeros on to the price. OTOH, if the price is under $1, maintaining a bid/ask spread is harder to do.
Biting the hand that feeds IT
