Is Baby Buffett a bargain?

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Good news, average investors: You too can now afford a share of Warren Buffett's coveted Berkshire Hathaway stock, thanks to a 50-to-1 stock split that cut the price of shares from $3,500 to around $76.

Of course, that's Warren's B shares. Most of us can still only fantasize about owning Berkshire's A stock, which last traded at $114,950 a share.

But is it still a good deal? So far, yes. The B shares have shot up 5.46% since the split, at a time when the Standard & Poor's 500 sank 3.4%.

Stock splits do absolutely nothing to change the fundamentals of the company. If you owned one share of the B stock before the split, you now own 50 at 1/50th of the value. But the split does seem to have given a psychological boost to the stock, as well as making it more affordable to the masses.

The split also means it is now being widely traded, a requirement for the company to be included in the S&P 500. Berkshire is expected to be added to the blue-chip index after market close today, once Buffet's deal to purchase railroad Burlington Northern Santa Fe is completed. The merger is expected to close today.
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