Some of the most expensive stocks are ones that have a high price tag, and many of us think that price equals value. A corporation becomes more valuable and, thus, more sought-after, the higher the price. The following companies may not be within the means of the typical investor to purchase even one share of stock.
Because of their expensive share prices, retail investors need to be aware of which stocks can be challenging to trade. It’s also important to remember that not all brokers give their customers the choice to buy fractional shares.
A company’s stock price does not always indicate whether it is overvalued or undervalued because a company’s market capitalization is a function of both its share price and the total number of outstanding shares.
Here’s a list of the top five highest-priced stocks that trade in the U.S.
Stocks Name | Stock Price | Market |
Berkshire Hathaway | $421,800.00 | $619.9 Billion |
NVR | $4,370.80 | $14.38 Billion |
Seaboard | $3,750.01 | $4.35 Billion |
Alphabet | $2,403.37 | $1.58 Trillion |
AutoZone | $2,182.37 | $42.53 Billion |
1. Berkshire Hathaway
The shares of Berkshire Hathaway (BRK.A), the largest firm in the United States and one of the top 10 by market value, are the most expensive of any American company.
Originally a textile company that Warren Buffett acquired, Berkshire is now a holding company for his assets. GEICO Insurance, BNSF Railway, and Lubrizol Chemical are just a few of its various interests.
Berkshire’s shares were notoriously not split by Buffett, despite the fact that this is what businesses often do to facilitate stock trading. As the company’s CEO, he kept the price high to make trading difficult and to deter short-term trading, which would increase the volatility of the stock.
In 1996, the business introduced a new share class (BRK.B), which has a cheaper price. This makes it possible for investors to buy much smaller shares of the corporation. In 2022, they exchange for a considerably more affordable $280.83.
2. NVR
Virginia-based NVR (NVR) is a homebuilding and mortgage banking business. 34 cities throughout 14 states, including Maryland, New York, North Carolina, Virginia, Ohio, Indiana, Illinois, South Carolina, Pennsylvania, Tennessee, Florida, Delaware, West Virginia, and New Jersey, as well as Washington, D.C., are served by the corporation.
Construction companies create and market houses. The three brands under this division’s control are Ryan Homes, NVHomes, and Heartland Homes.
The homebuilding business is supported by NVR’s building products section, which provides and delivers building supplies.
The company’s mortgage banking sector consists of two distinct units. While NVR Settlement Services handles settlement and title transactions for its homebuilding unit, NVR Mortgage provides services to homebuyers.
3. Seaboard
Agricultural items including pig, sugar, and alcohol are all sold by the global company Seaboard (SEB), which deals in grains. Additionally, the business engages in milling and commodity trading.
Through a series of acquisitions, including its first one in 1918 when it bought its first flour mill in Kansas, it rose to prominence. In 1959, it merged with Hathaway Industries to become a publicly traded corporation. It became Seaboard Allied Milling Corporation at that point.
4. Alphabet
As the creator of the most widely used search engine in the world, Google, Alphabet (GOOG) was established in 1998. It changed its name to Alphabet and established a brand-new holding company following a reorganisation in 2015.
Performance and brand advertising, among other types of advertising, account for a sizeable portion of Alphabet’s revenue. The remainder comes from hardware sales, in-app purchases made within apps, app sales, licencing fees for Google’s search engine, YouTube, Google Play, Google Cloud, Chrome browser, and Android mobile operating system, as well as from in-app purchases made within apps.
5. AutoZone
Automotive replacement parts and accessories are sold and distributed by AutoZone Inc. (AZO). Under the ALLDATA brand, the corporation sells vehicle diagnostic and repair software through a sales scheme that offers commercial financing and delivery of parts and other supplies.
On May 7, 2022, AutoZone had 58 stores in Brazil, 673 stores in Mexico, and 6,115 stores overall. The business is headquartered in Memphis, Tennessee, and was established in 1979.
FAQs
Is the Price of a Company’s Stocks Indicative of That Company’s Value?
The price at which buyers and sellers are currently willing to exchange shares of a corporation is simply known as the stock price. As a result, the stock price alone does not accurately reflect the company’s full value. The market capitalization change represented by the stock price represents a proportional change in the worth of the company.
What Is the Most Expensive Stock in the World?
The most expensive stock in the world is Berkshire Hathaway. The fact that the company’s stock was never split is one of the key factors contributing to its high price. Warren Buffet, the company’s CEO, purposefully opted against a split to avoid short-term trading, which would have increased volatility.
What Is the Largest Gain a Stock Has Ever Made in One Day?
Following a Porsche announcement in October 2008, Volkswagen stock had its biggest one-day rise. On October 28, the German automaker’s stock surged more than 93% after Porsche said that it had bought a 74.1 percent stake in the business through futures trading.
Why Is Berkshire Hathaway Stock So Expensive?
Warren Buffet, the CEO of Berkshire Hathaway, decided against a stock split, which is why the price of the company’s shares is so high.
He believed that by restricting high-frequency trading, the stock’s short-term volatility would be reduced, adding value to the company.