"Buffett had to increase demand for the common via a stock split and authorized buyback."


If memory serves, the B shares were established at 50:1 during the BNSF acquisition. I believe it enabled BNSF employees (and shareholders) to participate more fully as owners on the other side of the deal. I happened to own both Brk & BNSF prior to the deal. In the immediate, the deal was very good for me as a BNSF shareholder. Over the longer term, the deal was great for me as a Brk shareholder.

It did increase my demand for "the common", but it wasn't the split so much as WEB's identification of a major & appreciating asset with public utility-like centrality to NA commerce. The pairing of BNSF with Brk's float was not something I fully appreciated at the time - colloquially known as "the frosting".