Stock Splits, Issuance & Owner Discipline | 1984 Shareholder Letter

In the 1984 shareholder letter, Warren Buffett dismantles several common corporate practices — like stock splits, excessive trading, and overvalued acquisitions — arguing they often harm long-term shareholders.

He stresses that issuing undervalued stock is equivalent to selling the business too cheap, diluting long-term value. Similarly, stock splits attract short-term traders, not thoughtful owners, distorting shareholder quality and market behavior.

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