Berkshire Hathaway's Telltale Stock Split

More than $1 trillion in capital is tied directly to the S&P 500 index, and index-weighted mutual funds are not the type of investors to make hasty moves if the 79-year-old Buffett has to step down. Additionally, the Omaha billionaire has pledged much of his wealth - including a trove of Class-A shares - to the Gates Foundation. Those shares, in turn, are convertible into Class-B shares, adding more liquidity and increasing the public ownership of the stock.

Though Buffett and Berkshire haven't mentioned the tactic openly, Smyth calls it Buffett's "unstated strategy to stabilize the shareholder base."

Concerns about the health of Apple (AAPL) CEO Steve Jobs; the late Bruce Wasserstein, who was CEO of Lazard only weeks ago; and the brouhaha over Bank of America (BAC) CEO Ken Lewis have caused those companies' stock prices to stumble recently. Buffett's aura is arguably even more closely tied to the fate of Berkshire -- at least in investors' minds. Smyth believes Buffett is preparing the company and shareholder base for his eventual retreat as the public face of Berkshire.

"Getting more shares into the hands of more stable investors like index funds helps to stabilize the shareholder base," he continues. "They won't dump Berkshire Hathaway if something happens to Buffett. He cares about the welfare of the company even after he leaves it."

-- Written by Lauren Tara LaCapra in New York.

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