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Here Is the Real Story Behind Warren Buffett's Stance on Stock Split

Warren E. Buffett, the world's most successful investor, has long defended his decision to not split the stock of his company Berkshire Hathaway (BRK.A - Get Report) , but in a sense, there has already been a split.

Let's examine how Berkshire Hathaway pursues long-term value enhancement.

As most investors know, Class A shares of Berkshire Hathaway don't come cheap, trading at more than $217,000 apiece.

Must Read: Jim Cramer on How to Make a Quick Buck Off Warren Buffett's Berkshire Meeting

And yet, by issuing Class B shares in 1996, (BRK.B - Get Report) , Buffett has already indirectly split the shares. Class B shares of Berkshire Hathaway are a bargain proposition by his standards, costing about $145 each.

How can one Class A share cost investors the equivalent of a Lamborghini Huracan, while one Class B share amount to less than half the price of an Apple Watch?

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Although the cheaper Class B...