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Thomas S. Caldwell, C.M.

In the olden days, when a stock reached $100+ the company would split the stock. These days, stocks are soaring past $300. Why are we no longer seeing stock splits?

Posted: December 23, 2019
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A transcript of this episode is available below, modified for a more enjoyable reading experience. For more posts exploring the ideas we talk about in the episode, check out our Related Reads links.

Your Host
Thomas Caldwell
Thomas S. Caldwell, C.M.

Chairman & Founder, Director

Thomas S. Caldwell graduated from McGill University in 1965, and has been actively involved in the investment industry since that time.
Mr. Caldwell is Chairman of Caldwell Investment Management Ltd., an organization founded in 1990. Caldwell Investment Management Ltd. is a diversified investment company providing investment management to a broad spectrum of investors throughout Canada.
In 2014, Mr. Caldwell was inducted into the IIAC Investment Industry Hall of Fame.
Mr. Caldwell is CEO and a Director of Urbana Corporation, a publicly traded investment company and Chairman of the Canadian Securities Exchange (“CSE”), “The Exchange for Entrepreneurs”. He also serves on the Board of the Conference of Defence Associations Institute in Ottawa. Mr. Caldwell was appointed Honorary Lieutenant-Colonel of The Lincoln and Welland Regiment in January 2014.
Mr. Caldwell is a past Governor of the Toronto Stock Exchange and one of the leading experts in capital markets, particularly in trading environments. He is recognized as one of the world’s foremost investors in securities exchanges. Mr. Caldwell manages the investment pools he is responsible for on a value/strategic overview basis.
Caldwell Investment Management Ltd. and its affiliates were the second-largest owners of the New York Stock Exchange prior to the NYSE’s demutualization.
Mr. Caldwell has, through his career, been actively involved in addressing social and community needs.
He was awarded Her Majesty’s Golden Jubilee Medal in 2002 for his activities on behalf of Canadian Veterans. In 2003 he was appointed a Member of the Order of Canada for his work in assisting those in need as well as contributing to institutions working to better the lives of others. In 2012, he received Her Majesty’s Diamond Jubilee for his efforts on behalf of the disadvantaged.
Mr. Caldwell and his wife Dorothy have been married since 1966 and have two sons, Brendan and Theo, and four grandchildren.

00:17 Well I'm glad you prefaced this question with in olden days and asked me the question. It is quite interesting it is a phenomenon that has occurred over the last 10 years. Typically when stock prices got high i.e.
00:29 As you said 100 dollars or thereabouts you would split them because individual retail investors like buying stock at 10 or 20 or 30 dollars the Korean banks just to do all that. Now you're seeing stocks trading in the multi hundreds of dollars and again multi thousands of dollars per share and they don't split them anymore. And I think that phenomenon reflects the fact that exchange traded funds don't care about the split. They're the major investors the retail investors in great measure have left the field.
00:58 So they're really not interested in attracting that buyer. It also makes it cheaper for ETF to buy and sell their components because you're talking about cents a share. Census share and a dollars a share certificate doesn't cost very much. So it is a reflection of a switch from investor base from individual retail investors to institutionalized investors particularly the exchange traded funds.