Do you ever wonder how much stock you could buy in your favorite companies for $1,000? Share prices range wildly depending on the company you’re interested in. However, when it comes to the most expensive stocks on the market, $1,000 won’t even buy you one share.
Companies have control over their share prices during their IPO, but after that, they’re subject to the movement of the market. Their share prices could increase or decrease depending on factors like the company’s financial performance, current economic conditions, or even just the way investors are feeling in general.
In this article, we’ll talk about the most expensive stocks on the market today and whether or not they’re worth buying.
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Most Expensive Stocks In The US
There are thousands of stocks that currently trade on the US markets. Some are worth only pennies, while others cost thousands of dollars for a single share. You’ll find companies of all sizes and industries on the stock market today. You might expect that tech stocks like Facebook, Twitter, and Google to be the most expensive on the market, but this isn’t always the case.
Here are the most expensive stocks in the US.
Berkshire Hathaway Inc.
This massive international conglomerate is trading for around $347,000. Yes, you read that right. That is the price for one share. It is by far the most expensive stock on the market today. It also has one of the largest market capitalizations in the world at $542 billion.
Berkshire Hathaway Inc. (BRK .A) is led by Warren Buffett. He has been the CEO of the company for fifty years. Warren Buffet is considered by many to be the greatest investor alive today. During his tenure, Buffet transformed Berkshire Hathaway from a textile company into a huge holding company. They have assets in a variety of industries, including insurance, finance, transportation, utilities, and food. Some of their holdings include Geico, General Re, BNSF, and McLane Company.
If $347,000 for one stock sounds too high, don’t worry. They offer class A shares and class B shares. The A-share stock (BRK .A) is $347,000 a share while the B-share (BRK .B) is a more reasonable $231 per share. Class B shares do not carry the same voting rights as Class A shares, but this likely won’t be a problem for most retail investors.
Berkshire Hathaway hosts their shareholder meeting in Omaha, Nebraska every year. Thousands of people attend in hopes of hearing Warren Buffet’s valuable business insights. The event has become so popular it has been nicknamed “Woodstock for Capitalists.” Due to the pandemic, Buffett held the event virtually in 2020, and it will likely be virtual again in 2021.
The company with the second-highest stock price in the US is NVR Inc. Their stock is currently trading around $4,000 per share. Similar to Berkshire Hathaway, NVR is also a holding company. Some of their holdings include Ryan Homes, NVHomes, NVR Mortgage, Rymarc Homes, and several others. They operate mainly in the real estate industry, and most of their holdings are either home building companies or home loan providers.
While their stock price is high, their market capitalization is not. They have a market cap of just under $15 billion. Their CEO, Paul Saville, has been leading the company for fifteen years.
Despite their high stock price, they don’t have the name recognition of tech stocks like Apple or Alphabet. NVR is still a valuable company though, as they have built over three hundred thousand homes for customers around the US over the years. Real estate is an essential part of our community, which has made NVR’s services very valuable.
With a share price of $3,200, Seaboard Corporation has a very high share price despite not being very well known. They are based in Kansas and provide services in the transportation and agriculture industries. Seaboard is over one hundred years old, but they have a market capitalization of just under $4 billion.
The pandemic took a toll on their share prices. They were trading around $4,200 in January 2020, and are now trading around $3,200. While the rest of the stock market recovered quickly, Seaboard hasn’t been able to return to peak form.
Seaboard has over 23,000 employees and has a 50% non-controlling interest in Butterball, LLC, a company best known for its turkey products. They operate in over 40 countries and are a Fortune 500 company.
Amazon has been rewarding long-term investors with great returns for over two decades now. While the company is not as old as some of the others on our list, it has the fourth-highest stock price in the US. Their shares are currently trading at just over $3,100. Investors who bought the stock in the late 90s have seen massive returns. Amazon also has the third-greatest market capitalization in the US, behind only Apple and Microsoft.
Jeff Bezos founded Amazon in 1994. The company’s skyrocketing share prices have made him the richest person in the world. While the company offers a variety of products and services, they are best known for their e-commerce platform. They have been very successful as many people now prefer to do their shopping online. The pandemic has only encouraged this trend of online shopping and made Amazon even more appealing for investors.
With over half a million employees, Amazon is one of the world’s largest employers. What started out as a way to buy books online has become a place to buy virtually anything. They also offer popular video and streaming services, and sell a number of popular tech products, such as
While they are known for being a large online retailer, it is another part of their business that has helped them grow as well. AWS, Amazon Web Service, provides cloud computing services and is very valuable on its own. If AWS was separated from Amazon, it would still have an impressive market cap.
Most Expensive Stocks In The World
Berkshire Hathaway currently holds the title of most expensive stock in the world. However, there are some international companies that also have a very high share price. The company outside the US with the most expensive shares is Lindt & Sprungli AD.
Lindt & Sprungli AD
Known as Lindt for short, the company was founded in Zurich in the mid-1830s and is still based in Switzerland today. They are a confectionary company best known for their chocolate. They started as a small candy store and have now grown to have the second-highest share price in the world.
The Swiss-based corporation has a price per share of $9,000 and a market capitalization of $20 billion. They are known for more than just chocolate though. They produce other sweets, including ice cream and seasonal desserts for Easter, Christmas, and other holidays. Lindt & Sprungli is a global company, with factories in Switzerland, France, Germany, Italy, Austria, and the US.
The company has over 14,000 employees and are best known for their Lindor chocolate balls. These chocolate balls consist of a hard chocolate shell and a smooth inside filling, available in a variety of flavors.
Most Expensive Does Not Mean Most Valuable
While Berkshire Hathaway has the highest stock price, they are not the most valuable company in the world. That honor currently goes to Apple, which has a market cap of $2 billion. Their individual price per share is around $120.
How can Apple be the world’s most valuable company but not have the highest stock price? This is because of their market capitalization and the number of shares they have. A company’s market cap is determined by multiplying the price of one share by the number of outstanding shares. There are two ways to have a high market cap – have a high stock price, or have a large number of outstanding shares.
Market capitalization refers to how much a company is worth, as determined by the stock market. The higher a company’s market cap, the more valuable investors believe the company to be.
Companies with high stock prices often worry that their shares are not affordable enough for everyday investors, so they may do a stock split. A stock split keeps the market cap the same, but it divides the price of a stock while multiplying the number of shares. Apple recently executed a stock split.
Microsoft and Amazon have the second and third greatest market caps. Both of them have market caps of over $1.5 billion.
Another measure of value for a company is its annual revenue. While Apple has the largest market cap and Berkshire has the highest stock price, neither have the greatest revenue of any American company. As of 2019, Walmart had the highest revenue of any company in the country.
They reported revenues of $500 billion, which resulted in profits of $14 billion. Yet their stock is worth only around $150 and their market capitalization is just under $500 billion. However, Apple does have the fourth-highest revenue of any American company, with Amazon, ExxonMobil, and CVS health rounding out the top five. Out of the top 10 companies in the world with the highest revenue, Walmart and Amazon are the only two on the list.
Investors consider both revenue and profits when deciding which companies to invest in. Revenue is the total amount of income a company generated over a certain period of time, and is often referred to as the ‘top line’. Profit, on the other hand, is referred to as the ‘bottom lin’e. Profit is calculated as total revenue minus total expenses.
A company needs to be able to maintain positive revenue and profit numbers. If revenues are great but profits are negative, a company’s expenses are eating away at all the money they earned. However, it can take several years for startups to become profitable, which many investors do take into account.
Most Expensive Stocks: Final Thoughts
If you’re looking to brag to your friends about owning a stock with a high share price, Warren Buffett’s BRK is the stock for you. Unfortunately, it will cost you hundreds of thousands of dollars to invest in their class A shares. Even the other stocks on this list will cost you well over $1,000 for a single share.
Just because a stock has a high price does not mean the stock or the company is extremely valuable. When evaluating a company’s overall value, remember to look at their market capitalization. This will give you insight into what investors think the company may be worth as a whole. It is easier to judge this than the price of their individual shares, since all companies have a different amount of outstanding shares available. Companies can perform a stock split at any time to lower their share price so more investors will be able to afford it.
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