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A handful of stocks now have prices per share that are in the four digits. These stocks appear to be highly expensive, and for some investors, a high share price may be a sign of a successful business. Some high-priced stocks have been outstanding performers over recent years.
But the cash price of a stock doesn’t reveal much about the intrinsic worth of a business. This is so because a company’s ownership structure, rather than its core competencies, determines a high share price.
Shares that are pricey may even discourage investors who believe a stock has little room for growth. Furthermore, less wealthy investors might not be able to purchase a single share of an expensive stock.
Forbes Advisor has compiled a list of the top 10 publicly traded companies with the most expensive share prices on major U.S. S. stock exchanges.
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The answer to this question depends on how you define “richest.” If you’re looking for the stock with the highest price per share, then Berkshire Hathaway Inc. (BRK.A) takes the crown. As of October 26, 2023, a single share of BRK.A costs a staggering $633,899.
However, if you’re looking for the stock with the highest market capitalization (total value of all outstanding shares) then Apple Inc. (AAPL) takes the lead. As of the same date, Apple’s market cap is a whopping $2.3 trillion.
Here’s a closer look at both of these companies:
Berkshire Hathaway Inc (BRK.A)
Berkshire Hathaway is a multinational conglomerate holding company led by legendary investor Warren Buffett. The company owns a diverse portfolio of businesses, including insurance, railroads, utilities, manufacturing, and retail.
BRK.A shares have a high price per share because the company has never split its stock. This means that each share represents a significant ownership stake in the company. However BRK.B shares are also available, which have a lower price per share.
Apple Inc. (AAPL)
Apple is the world’s largest technology company by market capitalization. The company is best known for its iPhones, iPads, Macs, and other consumer electronics products.
AAPL shares have a high market capitalization because the company is highly profitable and has a large and loyal customer base. The company also has a strong track record of innovation and growth.
Other High-Priced Stocks
While BRK.A and AAPL are the two most expensive stocks in the world, there are a number of other companies with high share prices. These include:
- Seaboard Corp. (SEB): $3,150 per share
- NVR, Inc. (NVR): $7,914 per share
- Booking Holdings Inc. (BKNG): $3,632 per share
- AutoZone Inc. (AZO): $3,147 per share
- Chipotle Mexican Grill (CMG): $2,896 per share
- White Mountains Insurance (WTM): $1,746 per share
- Texas Pacific Land (TPL): $1,506 per share
- First Citizens BancShares (FCNCA): $1,581 per share
- MercadoLibre Inc. (MELI): $1,505 per share
Why Do Some Stocks Have High Prices?
There are a few reasons why some stocks have high prices. These include:
- The company is highly profitable and has a strong track record of growth.
- The company has a large and loyal customer base.
- The company has a strong brand reputation.
- The company’s stock has never been split.
- The company operates in a high-growth industry.
Should You Buy High-Priced Stocks?
Whether or not you should buy high-priced stocks depends on your individual investment goals and risk tolerance. If you are a long-term investor with a high risk tolerance, then high-priced stocks can be a good investment. However, if you are a short-term investor or have a low risk tolerance, then you may want to avoid high-priced stocks.
It is important to remember that the price of a stock does not necessarily reflect its value. A high-priced stock may be overvalued, while a low-priced stock may be undervalued. It is important to do your own research before investing in any stock.
The richest stock in the world, as measured by price per share, is Berkshire Hathaway Inc. (BRK.A). However, the richest stock in the world, as measured by market capitalization, is Apple Inc. (AAPL). There are a number of other companies with high share prices, and whether or not you should buy them depends on your individual investment goals and risk tolerance.
Share Price vs. Value
In the stock market, the proverb “price is what you pay, value is what you get” is undoubtedly true.
Investors seeking value in the market, according to Cornerstone Financial Services’ managing partner and investment advisor representative Daniel Milan, should disregard a stock’s share price and instead concentrate on its price-to-earnings ratio (P/E ratio) or other essential valuation metrics.
Price-to-earnings ratio (P/E) or, more crucially, forward P/E should be valuable to investors, according to Milan.
An investor can more accurately assess whether they are getting a good deal of value for their money by looking at a low P/E ratio. ”.
Berkshire Hathaway, Inc. (BRK.A)
10-Year Avg. Annualized Return
The multinational conglomerate holding company of billionaire value investor Warren Buffett is called Berkshire Hathaway.
With a sizable portfolio of both public and private investments, Berkshire owns shares of Chevron (CVX), Apple (AAPL), and Bank of America (BAC). Although Berkshire’s Class A stock is almost half a million dollars per share, its Class B shares are fairly priced at just $308.
Because he thinks the high stock price guarantees Berkshire has a sophisticated voting shareholder base with a long-term investing mindset, Buffett has stated he will never split Berkshire’s Class A stock.
*As of April 4, 2024, StockRover is the source of all data.