Core Viewpoint - Berkshire Hathaway is currently valued at $1.11 trillion, making it the seventh most valuable U.S.-based company, despite not being included in the Dow Jones Industrial Average [1][11]. Stock Split Considerations - A potential stock split of Berkshire's Class B shares could enhance its chances of being included in the Dow, as the index is price-weighted and favors companies with lower share prices [2][5]. - The last stock split occurred 15 years ago, and a new split could lower the share price to align with the median price of Dow components, which is around $225 [3][5][6]. - Current trading conditions, such as zero-commission trading and fractional shares, reduce the necessity for a stock split to attract investors [4][11]. Dow Jones Industrial Average Dynamics - The Dow is heavily weighted towards financial sector companies, which collectively account for 25.1% of the index, making it challenging for Berkshire to be included due to potential redundancies with existing components [7][9]. - If Berkshire were to split its stock, it might replace Travelers Companies, but its diverse business operations extend beyond insurance [8][9]. Investment Rationale - The fundamental strength of Berkshire's underlying businesses and its diversification across various markets are the primary reasons to consider it a buy, rather than the potential for a stock split or inclusion in the Dow [12][14]. - Berkshire holds a record high of $334.2 billion in cash and equivalents, providing significant resources for future investments [14][15].

Group 1: Stock Split Speculation - Stock splits in the tech sector have gained attention, with companies like Nvidia and Broadcom executing splits to attract more investors as their stock prices exceeded $1,000 per share [1] - Microsoft, currently priced around $420 per share, may also consider a stock split, contrary to some investors' assumptions [1] Group 2: Microsoft's Historical Context - Microsoft has not executed a stock split since 2003, having initiated nine splits between 1987 and 2003 [2][3] - The company's stock price has increased approximately 1,000% since Satya Nadella became CEO, reaching a record-high nominal price [3] Group 3: Market Dynamics - Despite its significant growth, Microsoft's stock price does not place it among the top 100 highest-priced stocks, which may not necessitate a split in the current market [4] - Microsoft is one of the more influential stocks in the Dow Jones Industrial Average, with only Goldman Sachs and UnitedHealth Group priced higher [5][6] Group 4: Competitive Pressure - Apple, another Dow stock, executed a 4-for-1 stock split in August 2020 when its stock price was around $450 per share, indicating potential pressure for Microsoft to follow suit [6][7] - Microsoft's previous stock splits were either 2-for-1 or 3-for-2, which may influence the nature of any future split [7] Group 5: Market Capitalization Considerations - A potential 2-for-1 split would align Microsoft's stock price with other Dow components and support its $3.1 trillion market cap [8] - Achieving a $4 trillion market cap is unprecedented, and such milestones typically lead to gradual changes, which could appease S&P Dow Jones Indices [8] Group 6: Future Expectations - It is anticipated that Microsoft will likely execute a stock split this year, driven by pressure from S&P Dow Jones Indices [9] - The company may take necessary actions to maintain its status within the Dow Jones Industrial Average, given the increased interest associated with being part of the index [10]