Part 3/7:
Buffett's influence isn't limited to stock splits alone; O'Reilly references Buffett's concerns regarding companies that failed to account for stock options in their financial statements. For instance, he successfully encouraged Coca-Cola to expense stock options, which set a notable precedent in the S&P 500.
The Impact of Economic Climate and Trading Technologies
The time frame of 2008 to 2013 coincided with the aftermath of the financial crisis, prompting companies to prioritize stability. This consideration may have resulted in fewer stock splits as organizations cleaned up their financial reporting and avoided any potential confusion. In fact, during that period, reverse stock splits were more prevalent as companies focused on maintaining respectable share prices.