Many of us associate value with price, and some of the most sought-after stocks are those that have a high price tag. An increase in price makes a company more valuable and, consequently, more appealing. The following companies have stocks that are too expensive for the average investor to purchase even one share of.
But keep in mind that a high stock price does not always translate into a company’s full market value. Market capitalization, which is calculated by multiplying the share price by the number of outstanding shares, determines this. The price of a company’s stock is meaningless on its own without knowledge of the number of shares. A company with ten shares, for example, valued at $1 million apiece, would undoubtedly have a high share price and a total market value of $10 million. Even though ten million shares of a different company would only cost $200 each, they would still be worth $2 billion.
Retail investors should be aware of which stocks, due to their high price per share, may be challenging to trade. It’s also important to remember that not all brokers allow their customers to buy fractional shares, so even these high flyers are not inaccessible.
The top five most expensive stocks that are traded in the U.S. S. excluding those sold exclusively on over-the-counter (OTC) markets as of October 2022 All data is current as of Jan. 31, 2023, unless otherwise noted.
Berkshire Hathaway has the highest-priced shares of any U. S. company, and is among the biggest in the world as well, regularly placing in the top 10 by market value.
Berkshire was purchased by Warren Buffett in 1965. It is currently a holding company for his investments after being a textile company initially. Among its numerous holdings are the BNSF Railway, the Lubrizol chemical company, and the GEICO insurance company.
Known for his resistance, Buffett refused to split Berkshires shares, which is typically done by companies to facilitate stock trading. As the CEO of the company, he maintained the price high to discourage short-term trading, which would have increased stock volatility, and to make trading more difficult.
The company launched a new share class in 1996 (BRK. B), which has a lower price. This makes it possible for customers to buy much smaller shares of the business. They trade for a much more accessible price. This stock closed at $311. 52 on Jan. 31, 2023.
NVR is a Virginia-based mortgage banking and homebuilding company. 34 cities across 14 states—Maryland, New York, North Carolina, Virginia, Ohio, Indiana, Illinois, South Carolina, Pennsylvania, Tennessee, Florida, Delaware, West Virginia, and New Jersey—as well as D.C. are served by the company’s services. C.
The homebuilding operations build and sell homes. The three brands that make up this division are Ryan Homes, NVHomes, and Heartland Homes. Building supplies are supplied and delivered by NVR’s building products division in support of the homebuilding unit.
The company’s mortgage banking division is divided into two distinct units. While NVR Settlement Services handles title and settlement transactions for its homebuilding unit, NVR Mortgage provides services to homebuyers.
A company’s stock price can be computed by dividing its market capitalization by the total number of shares that are outstanding.
A multinational company called Seaboard trades in grains and agricultural goods like sugar, alcohol, and pork. The company also deals in commodity trading and milling.
It amassed wealth through a string of acquisitions, the first of which came about in 1918 when it bought its first flour mill in Kansas. In 1959, it amalgamated with Hathaway Industries and turned into an open business. At that point, it became known as Seaboard Allied Milling Corporation.
Seaboard, a Kansas-based company, now has offices all over the world thanks to a number of subsidiaries and uncontrolled, unconsolidated affiliates.
AutoZone retails and distributes automotive replacement parts and accessories. The business sells automotive diagnostic and repair software under the ALLDATA brand and offers a sales program that includes delivery of parts and other products, commercial credit, and other benefits.
In 2022, AutoZone had 6,196 locations across the US, 706 locations in Mexico, and 76 locations in Brazil. The business is headquartered in Memphis, Tennessee, and was established in 1979.
The board of directors of the company will frequently decide to split the stock when the price of the stock rises too high, which lowers the share price while simultaneously increasing the number of outstanding shares. Lower share prices are the result, but the market capitalization of the company is essentially unaffected.
Booking Holdings is an online supplier of travel-related services, such as vacation packages, hotels, cars, and flights. Booking Holdings provides services in more than 220 countries to partners and customers.
The companys roots go back to 1997 when Priceline launched. Priceline purchased acquired Booking. com in 2005. It became Booking Holdings in 2018.
The most expensive stock in the world is Berkshire Hathaway’s Class A shares (BRK.A), trading at a staggering $628,390 per share as of March 20, 2024. This price reflects the company’s immense size and success, as well as the limited number of shares available.
Why Is Berkshire Hathaway Stock So Expensive?
Several factors contribute to the high price of Berkshire Hathaway stock:
1. Limited Share Availability: Berkshire Hathaway has only 500,000 outstanding Class A shares, making them a rare commodity in the market. This scarcity drives up the price per share.
2. No Stock Splits: Unlike many companies that split their shares to make them more accessible, Berkshire Hathaway has never split its Class A shares. This keeps the price high, potentially discouraging short-term trading and promoting long-term investment.
3. Company Success: Berkshire Hathaway, led by legendary investor Warren Buffett has a long history of success and growth. This strong track record attracts investors willing to pay a premium for a piece of the company.
Other High-Priced Stocks
While Berkshire Hathaway holds the top spot, other companies boast high stock prices, including:
1. NVR (NVR): This homebuilding and mortgage banking company trades at around $5,270 per share
2. Seaboard (SEB): This multinational corporation dealing in grains and agricultural products has a share price of approximately $3,920.
3. AutoZone (AZO): This automotive parts retailer trades at around $2,438 per share
4. Booking Holdings (BKNG): This online travel agency has a share price of approximately $2,434.
Why Are Some Stocks So Expensive?
Several reasons contribute to the high price of certain stocks:
1. Limited Share Availability: As seen with Berkshire Hathaway, a limited number of shares can drive up the price.
2. Lack of Stock Splits: Companies that choose not to split their shares maintain a higher price per share.
3. High Demand: Investor interest and positive company performance can increase demand, driving up the price.
Is the Price of a Company’s Stock Indicative of Its Value?
While a high stock price may indicate investor confidence and strong company performance, it’s not the sole indicator of a company’s value.
Market capitalization, which considers both the share price and the number of outstanding shares, provides a more accurate picture of a company’s overall value.
The high price of Berkshire Hathaway stock reflects the company’s success, limited share availability, and investor confidence. While other companies boast high stock prices, it’s crucial to consider the factors driving the price and analyze the company’s overall value before making investment decisions.
Is the Price of a Company’s Stocks Indicative of That Company’s Value?
Simply put, a company’s stock price is the current price at which buyers and sellers are willing to exchange its shares. As such, the stock price by itself does not accurately represent the company’s total value. Given that it represents a percentage change in a company’s market capitalization, the stock price is a measure of that value.
What Is the Most Expensive Stock in the World?
Berkshire Hathaway is the worlds most expensive stock. The fact that the company never experienced a stock split is one of the primary causes of its exorbitant stock price. Warren Buffet, the CEO of the company, purposefully chose against a split in order to avoid short-term trading, which would have increased volatility.
How is the Stock Price Determined? | Stock Market for Beginners (Part 1) | Lumovest
FAQ
What business has the highest stock price?
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Name
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Price
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1
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Microsoft 1MSFT
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$424.59 0.22%
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2
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Apple 2AAPL
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$168.45 0.67%
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3
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NVIDIA 3NVDA
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$871.33 0.99%
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4
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Alphabet (Google) 4GOOG
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$156.14 1.43%
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Has a stock ever gone up 1000 percent?
What is the most expensive stock?
As noted, investors can determine the highest priced stock in multiple ways. For this article, GOBankingRates defined “expensive” by the quoted stock price. The most expensive stock in terms of the stock price is an A share of Berkshire Hathaway (NYSE: BRK.A). This stock closed at $429,200 per share on July 20.
Which stocks have the highest share prices in history?
From chocolate candy makers to mining companies, the list of stocks that have reached such high share prices is diverse. Here are 10 of the highest stock prices in history. Warren Buffett’s Berkshire Hathaway ( BRK.A) commands the No. 1 position, with an impressive stock price of over half a million dollars.
What does a high stock price mean?
In general, a high stock price indicates a business has been successful, though it’s no guarantee that it has been. Below are 10 of the most expensive stocks — those with the highest share prices — that investors can buy and why a stock price actually doesn’t tell you much at all. What are the top 10 highest-priced stocks?
Which companies have the highest stock prices in the world?
Warren Buffett’s Berkshire Hathaway ( BRK.A) commands the No. 1 position, with an impressive stock price of over half a million dollars. Swiss chocolatier Lindt & Sprüngli ( LISN) holds steady at No. 2 with its six-figure stock price of CHF 123,433. Internet phenomena Amazon and Google make the list, with stock prices soaring in the thousands.