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> I'm going to try to find a source, but I saw an analysis where they measured from a year before the split, There's a bit of time travel / survivor bias with
by Majromax 5y ago
> I'm going to try to find a source, but I saw an analysis where they measured from a year before the split,
There's a bit of time travel / survivor bias with this one. A company that has not beaten the market is much less likely to split its stock. In other words, if I know nothing other than that a company is splitting its stock, I can reasonably guess that it's shown good returns in recent history.
- and-not-drew 5y agoYeah, that was their whole point. Stock splits don't cause better returns, but the stocks with the best returns are more likely to split.