They did the split so that they could buy Burlington Northern in a partial cash deal. As part of the deal, they need to give shares of Berkshire to Burlington shareholders, many of whom own less than the $3000 needed to receive one of the old BRK-B's.I think they did the split so it could be added to the index.
(1) S&P has criteria on stock liquidity. By splitting the class B shares 50:1, they were able to satisfy S&P's criteria. (Prior to that, they did not satisfy said liquidity.)How does the split effect index inclusion?
Economic theory says "no". If you give me a $100 bill, and I give you two $50, it's a zero-sum exchange.Now BRK is split and B shares selling in the $70's is there any reason they will out perform the S&P by more than usual?