Seeking stock splits

Q: Where might I look up a company’s stock splits?

— J.P., St. George, Utah

A: Start at the horse’s mouth, by calling the company’s investor relations department and asking. An “Investors” section of the company’s website might also have that info. Or head to Finance.yahoo.com and type in the company’s ticker symbol; you can then click on “Statistics” and scroll down to see the company’s last split and its date, or click on “Historical Data” to look up many past splits. Searching online for “stock split calendar” will show you recent and upcoming splits.

Don’t get too excited about splits, though. They may be kind of exciting, but they really aren’t that meaningful. Yes, a regular stock split will suddenly leave you with many more shares — but the share price will have been adjusted downward proportionately. So if your 100 shares became 200 or 400 shares, your previous stock price will have gone from, say, $40 to $20 or $10, respectively, leaving your investment’s total value unchanged.

Q: Warren Buffett’s mentor, Benjamin Graham, reportedly said: “In the short run, the market is a voting machine; but in the long run, it is a weighing machine.” What does that mean? — Y.G., Homewood, Ala.

A: When measured in days or even months, a stock’s price reflects its popularity, with investors “voting” by buying and selling, sending prices up and down. Hot stocks will rise in price, while out-of-favor stocks will slump. But over the years, a stock’s price will reflect or approach the value of the underlying company, based on factors such as revenue, earnings and projected growth rates. A stock’s true intrinsic value is what really matters, making it smart to be a long-term investor.