Coke Stock Split May Irk Warren Buffett
Interestingly, 2010 was also the year that Buffett pushed for and received shareholder approval to initiate a 50-for-1 share split on the Class B shares of Berkshire. This move was done in order to help Buffett's empire fund its landmark bid for Burlington Northern Santa Fe Railroad. Buffett has called this $34 billion dollar acquisition -- the largest in Berkshire's history -- an "all-in" wager on the U.S. economy that will benefit shareholders for years to come.
With 200 million shares, Coca-Cola is by far Warren Buffett's largest stock holding. As of the end of 2011, the company represented more than one-fifth of the iconic portfolio. Living up to his title as a long-term investor, Buffett has claimed that he has never sold a share of Coke over the years.
The recent discussion of a Coca-Cola share split may irk Buffett from a philosophical standpoint, but I do not believe that it will inspire him to take any dramatic action towards his portfolio.
In fact, Buffett may actually end up supporting the move in the end. According to Bloomberg, Buffett's son, Howard Buffett, expressed his own approval for the plan and, as a member of the Coca-Cola board of directors, voted for it.
This is not the first time that we have seen Buffett shy away from his rule book nor will it be the last. Critics may express their disapproval and pan his decisions at times, but when following the investor's actions it is essential to keep in mind that his No. 1 rule is "don't lose money."
At the time of publication, Dion held no shares of stocks mentioned