Corporate executives are abandoning the tradition of stock splits, shifting toward a view once held exclusively by Warren Buffett. Dividing shares into smaller denominations does not change a company's value, yet boards previously used splits to increase trading volumes and signal confidence. Now, high prices are becoming a mark of prestige rather than a barrier to entry.

Data from Wall Street Horizon shows a clear decline in this practice. Since 2021, an average of 56 companies split their stock annually, down from 76 in previous years. This shift coincides with rule changes in the US that reduced transaction fees for odd lots, meaning shares under $250 are no longer the only efficient way to trade.

Fractional shares have further eroded the need for splits, as investors can buy a $100 slice of a company regardless of the nominal share price. This allows firms like Berkshire Hathaway to maintain A shares at $760,000 without locking out retail traders. High numbers now provide a level of cachet that suggests quality to the market.

Several S&P 500 firms, including Goldman Sachs and Eli Lilly, now trade above $1,000. While Nvidia split its shares two years ago, others are letting prices climb to signal success. Management teams are realizing that prestige often outweighs the perceived benefit of a lower share price for the average investor.