Link: Why does a stock split?
“But remember — $200 for a great stock is still a better deal than $2 for a lousy one.”
Exactly. It’s primarily marketing. Warren Buffett never split shares in Berkshire Hathaway (Class A) and that fund seems to have done pretty decent, historically.
I know sometimes funds will do reverse splits (ex: 1:10 split where you get 1 share for every 10 you own) to increase share price to keep it from being delisted, but that’s probably not a stock you want to have in your portfolio.
Splits play no part when I’m deciding to buy a stock.