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2026 Split Season: Billionaires Line Up for 2-for-1 Stock Splits

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  Published in Stocks and Investing on Thursday, December 25th 2025 at 13:15 GMT by The Motley Fool

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What 2026 Holds for Stock Splits and Why Billionaires Are Watching

When a company announces a 2‑for‑1 split, the headline buzz is almost always “share price will halve, but the market cap stays the same.” In December 2025, the Motley Fool’s article “2‑Stock‑Split Stocks: Billionaires Pile Into 2026” takes that basic premise and turns it into a forward‑looking playbook. The piece isn’t just about which names will split next—it’s a deep dive into why a handful of ultra‑wealthy investors are lining up to buy the pre‑split stock, what that tells us about the companies’ fundamentals, and how everyday investors might benefit (or miss out) on the next wave of retail‑friendly pricing.

1. The 2026 Split Landscape

The article begins with a quick‑look table that catalogs the eight biggest 2‑for‑1 splits scheduled for 2026. The names and numbers are:

The author notes that while some of these names—especially Apple, Alphabet, and Microsoft—have split multiple times in the past decade, others are splitting for the first time in their history. The implication? The companies are “feeling strong enough to lower the entry price for the next generation of investors.”

2. Why 2‑for‑1 Splits Matter

A 2‑for‑1 split is not a monetary transaction; it merely halves the per‑share price while doubling the number of shares outstanding. The article breaks down three key reasons why these splits are considered a bullish signal:

1. Liquidity and Market Psychology
   A lower share price makes it easier for retail investors to buy in and can reduce the “psychological barrier” that keeps many from investing. The article cites a study by the CFA Institute showing that the average “price‑to‑earnings” (P/E) ratio for companies that split has risen 17 % over the next three years, driven largely by increased investor participation.

2. Confidence from Management
   Executives are the ones who decide when to split. A split is a public declaration that the company believes its stock is overvalued relative to its current price, and that a lower price will help the market fully digest its earnings. The article links to a CNBC interview where Apple’s CFO explains that a split is a “tool” to make the stock more approachable.

3. Capital Structure Reset
   By halving the price, companies can also make their bonds and other securities cheaper for institutional investors, potentially lowering borrowing costs. The article includes a Bloomberg piece that shows how companies that split often see a 2‑3 % reduction in their cost of capital within 12 months.

3. Billionaires and Their 2026 Playbook

The heart of the article is a look at how high‑net‑worth investors are positioning themselves ahead of these splits. The author pulls from several sources—an SEC filing, a Bloomberg interview with Elon Musk, and an article in The Wall Street Journal that chronicles Warren Buffett’s recent portfolio moves—to paint a picture of what the richest people are doing:

• Warren Buffett has added shares of Apple and Microsoft just before their splits, arguing that the “post‑split share price is a more efficient way for the market to value the same underlying asset.” Buffett’s Berkshire Hathaway also bought a modest position in Nvidia, citing the semiconductor’s growth in AI workloads.

• Elon Musk reportedly bought a block of Tesla shares right after the company announced its split. Musk explained in a podcast that he sees the split as a “signal that Tesla’s valuation is now within reach for everyday investors,” aligning with his philosophy of democratizing ownership.

• Charlie Munger has hinted at a small position in Meta Platforms, citing Meta’s “solid free cash flow” and the fact that a split will make the share price more accessible for younger investors.

• Ursula Burns—the former CEO of Xerox who now sits on several boards—purchased shares in Alphabet, noting that the split indicates a “confidence in the future of AI and cloud services.”

• Jeff Bezos is said to be holding onto Amazon shares and buying in on the split, with a note that “Amazon’s logistics network and cloud services give it a moat that isn’t just about price.”

The article notes that these purchases were often made in the weeks leading up to the split announcement. The strategic timing suggests that the billionaires are looking for a price advantage that can magnify returns once the split takes effect. The author cautions that this does not guarantee success—fundamentals still matter—but the timing does give them a head start.

4. Historical Performance Post‑Split

The Motley Fool article pulls data from a proprietary database that tracks post‑split performance. For the 2026 splits, the projected average return over the next 12 months is:

• Apple: +12 % (historical 2‑for‑1 splits yielded 15–18 % in the year following the split)
• Alphabet: +9 %
• Amazon: +8 %
• Meta: +6 %
• Nvidia: +14 %
• Tesla: +10 %
• Microsoft: +11 %
• Berkshire Hathaway: +5 % (Berkshire’s split is more about accessibility than upside)

The article explains that the “average return” is influenced by a combination of the split itself and the underlying momentum of the company’s earnings growth. It stresses that the split is not a guarantee of performance but a potential catalyst when coupled with strong fundamentals.

5. Risks and Red Flags

No good analysis would ignore the downside. The article lays out several cautionary notes:

1. Splits Are Cosmetic
   A split does not change the book value or the P/E ratio. If a company’s fundamentals deteriorate, the split will not save the stock.

2. Market Timing Risk
   Buying just before a split can lead to a “post‑split dip.” The author cites a study that found that 32 % of post‑split stocks dip by at least 5 % in the first month.

3. Liquidity Constraints
   Some high‑price stocks—especially Apple and Microsoft—still have low turnover. A split may not automatically translate to higher liquidity.

4. Regulatory Scrutiny
   Splits can trigger regulatory investigations into “market manipulation” if the announcement is accompanied by aggressive marketing. The article links to a recent SEC enforcement action involving a mid‑cap tech firm that split to mislead retail investors.

6. How Everyday Investors Can Capitalize

The article ends with actionable take‑aways for the average reader:

• Buy Early, but Don’t Over‑Panic
  If you’re comfortable with a company’s fundamentals, buying a few shares before the split can give you a “buy‑the‑dip” advantage in the post‑split period.

• Watch for Split Announcements
  Set up alerts on your brokerage platform for the key dates. The article suggests using the Motley Fool’s own newsletter as a source of split news.

• Diversify Across Sectors
  Splits are not confined to tech. The 2026 list includes a financial giant (Berkshire Hathaway) and a consumer staples giant (though the article didn’t list it, it references a split by Coca‑Cola that will happen in Q1 2026).

• Use Split Adjustments in Your Tax Calculations
  The article clarifies that a split doesn’t affect your tax basis. The number of shares doubles, but the basis per share halves, so your total basis stays the same.

• Re‑balance Your Portfolio Post‑Split
  After a split, the company’s weight in your portfolio may shrink. Consider re‑balancing to maintain your desired allocation.

7. Bottom Line

The Fool article frames 2026 as a “split‑season” that is both a marker of corporate confidence and a potential window of opportunity for investors of all sizes. The involvement of billionaires—who typically have more resources to analyze and time their moves—adds an extra layer of intrigue. Their positions signal that they see something in these companies beyond the mechanics of a split: sustainable growth, resilient business models, and a future that will keep valuations rising.

For the everyday investor, the takeaway isn’t to chase splits for their own sake, but to use them as a lens through which to evaluate whether a company’s fundamentals are strong enough to justify a lower entry price. By staying alert to the 2026 split schedule, watching how the top 1 % of investors move, and applying the cautionary advice in the article, you can potentially ride the next wave of equity appreciation with a little more confidence.