Top 5 Highest Priced Stocks in America

The editor Chris Davis owned fractional shares of BRK.A at the time of publication. Booking Holdings claims to be the world’s leading provider of online travel. The company owns some of the most recognizable online travel booking brands, including Booking.com, Priceline, Kayak, OpenTable, Cheapflights and more. Booking Holdings’ companies operate in over 220 countries and territories. To find value stocks, investors can screen for fundamental value indicators, such as a low P/E ratio, a low P/S ratio and a low debt-to-equity ratio.

1. India-based Madras Rubber Factory (MRF) Limited is a surprise new entry in this list.
2. Alphabet Inc. is the new name of Google after it restructured in August 2015.
3. Value stocks are typically predictably profitable companies that often pay attractive dividend yields.
4. Value investors are often contrarian investors, buying stocks when the market is down and selling when the market is up.

White Mountains Insurance (WTM)

As you can see, there’s no rhyme or reason apparent behind these companies having such pricey stocks. Previously known as The Priceline Group Inc, Booking Holdings is one of the most renowned names in the travel industry — and also one of the most expensive stocks right now. It’s the parent company of Kayak.com, Rentalcars.com, Cheapflights, HotelsCombined, and, of course, ndax review Booking.com. The company now runs operations in 45 countries all over the world, boasting $8.6 billion in annual revenue (2021), a $4.33 billion market cap, and one of the highest stocks today. Dr. Robert Johnson, a chartered financial analyst (CFA) and professor of finance at Creighton University, says a company’s stock price should essentially be irrelevant to investors.

Our Services

But due to tit-for-tat sanctions and other retaliatory measures, Russia has essentially weaponized potash. The company has six different brands under its umbrella, including Booking.com, Priceline, and KAYAK. This division has three different brands, which are Ryan Homes, NVHomes, and Heartland Homes.

Which Are the Most Expensive Stocks in the World?

For example, a drug company stock may appear to trade at an attractively low P/E ratio and P/S ratio, but it may be a value trap if the patent exclusivity period of its leading drug is soon expiring. Value stocks are typically predictably profitable companies that often pay attractive dividend yields. Please note that the stocks above were selected by an experienced financial analyst, but they may not be right for your portfolio.

A stock with a high share price is generally just as likely to have long-term upside potential as a stock with a low share price. Berkshire Hathaway stock has reached its price for two primary reasons. As the term implies, a stock split divides the shares into multiple pieces.

You’ll notice that the price per share is substantially lower than the previous two examples. Again, the reason for this has to do with how the company divides shares. Warren Buffett’s empire comprises a range of affiliated businesses, including BNSF railways, Berkshire Hathaway Energy, GEICO care insurance, General Re reinsurance, and other insurance firms. Attendees at the company’s annual shareholder meetings typically exceed 40,000. Berkshire Hathaway is a famous conglomerate holding company headed by the legendary investor Warren Buffett and his business partner Charlie Munger. The firm invests in utilities, food companies, consumer goods, insurance, railways, and finance firms.

This means that profits increased almost 17,000-fold between 1965 and 2019. Some of its well-known brands include Geico, Dairy Queen, Oriental Trading Company, Duracell and Fruit of the Loom. AutoZone retails and distributes automotive replacement parts and accessories. The company provides a sales program that offers commercial credit and delivery of parts and other products and sells automotive diagnostic and repair software under the ALLDATA brand. NVR is a homebuilding and mortgage banking company based in Virginia.

For instance, it runs a price-earnings ratio of 7.3 times, below the industry median of 13.8 times. Berkshire Hathaway is far from the only stock that has risen to a high share price. These are the most expensive stock shares as measured by the closing share price on Nov. 17.

However, the company is and will remain flush with a “boatload of cash and U.S. Treasury bills,” Buffett wrote in a February letter to shareholders. Berkshire Hathaway has gained over $68 billion in market value since the beginning of the year, and the stock is up over 9%. The company created a new class of shares under the ticker symbol BRK.B in 1996. These shares are more accessible and affordable for the average investor. The company has two different units under its mortgage banking division.

They’ll use earnings per share to figure out a price-earnings ratio (P/E), in order to measure how much they’re paying for a given amount of the company’s earnings. And that’s how some investors measure how expensive a stock actually is. White Mountains runs a portfolio of companies in the financial services and insurance industry and looks to make opportunistic acquisitions in these industries. The New Hampshire-based company will sell businesses when it can receive attractive exit valuations. The only difference between stocks with expensive share prices and stocks with affordable share prices is their share structure.

Its Markel Ventures segment operates a diverse group of businesses outside the specialty insurance industry. Texas Pacific Land Corporation is a landowner in the state of Texas and generates revenue through oil and gas development, water services, oil and gas royalty interests, and more. The company was founded in 1871, https://forexbroker-listing.com/fxtm/ and is one of the largest landowners in Texas. This ownership is represented not by a stock’s share price but rather by its fundamental valuation metrics, such as P/E, price-to-sales and price-to-free cash flow ratios. Different companies have widely different share structures, even if they have similar market caps.

The below-market ideas feature upside potential through relevant underlying businesses. Or in other cases, the securities are so beaten down that it might make sense to go bullish on them. To be fair, you’ll need a contrarian mindset and some risk tolerance. However, such a framework means that growth opportunities are gone. Earnings per share have more recently been more volatile, and they saw negative growth in 2022.

Wayne Duggan has a decade of experience covering breaking market news and providing analysis and commentary related to popular stocks. News & World Report and a regular contributor for Forbes Advisor and USA Today. Chipotle sells burritos, tacos, burrito bowls, quesadillas and beverages, and its brand is focused on high-quality ingredients, competitive prices, convenience and speed of service. When we first noticed such a high price for Berkshire Hathaway shares, we thought it was a mistake, but we were wrong. Interestingly, in February 2018, the company’s name was changed from The Priceline Group Inc. to Booking Holdings. Thus, the founders wanted to emphasize the importance of the corporation’s most popular brand – Booking.com.

Value traps often have attractive fundamental metrics, such as low price-earnings or price-book ratios. However, value traps typically have structurally challenged businesses that can lead to the deterioration of these value metrics over time. For example, value traps may be losing market share to competitors or suffering from secular sales declines in a shrinking industry. The companies that saw a higher boost in share price were Tesla (783%), Moderna (528%), and Zoom (413%).

The high share price is largely due to the CEO’s decision not to split the stock. Keeping a high share price gives the company added prestige, and also makes short-term trading less accessible. Even if investing in them isn’t an option, keeping track of the most expensive stocks is always a good idea. It lets you see how the market is doing, what the trends are, and maybe even get inspiration for their next investment.

You can read more about our editorial guidelines and our products and services review methodology. A company’s stock price simply represents the current price at which a buyer and seller are willing to trade its stock. Therefore, the stock price alone doesn’t paint an accurate picture of its overall value. The stock price is a proportional value of a company’s value as it signifies a percentage change in its market cap. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. However, the restaurant chain quickly turned things around, and now the share price has climbed to $1,822, putting it squarely in this “top-10” list of stocks by price.

This action increases the total number of shares held by investors, boosts the stock’s liquidity, and decreases the stock price. Berkshire Hathaway is a classic example of companies that never split its stock. A better way to get a high-level read on the value of a company is through its market capitalization, or market cap.

EPS have increased an average of 21.0% annually over the last three years, and sales have grown an average of 9.1% annually over the same period. Chubb is a major property and casualty insurer, with operations in 54 countries around the world. Stride provides online schooling as an alternative to traditional classroom learning. Allison Transmission makes fully automatic transmissions for a wide array of vehicle types, including electric vehicles.

He felt that this would bring value to the company by preventing high-frequency trading, thereby reducing short-term volatility in the stock. One of the main reasons why the company’s stock is so expensive is because it never went through a stock split. The company’s CEO, Warren Buffet, deliberately decided against a split to prevent short-term trading which would lead to higher volatility. Some of the most sought-after stocks are those that come with a hefty price tag and many of us equate value with price.

Thanks to spectacular shareholder gains and the idiosyncrasies of its founder, this share value is unlikely to be matched by anything other than continued gains in Berkshire’s share price. There are many ways to evaluate a stock in addition to its absolute share price. Here, we take a look at some of the largest companies in the U.S. and abroad.

The reason why certain stocks are priced so high is usually due to the company having never or rarely having completed a stock split. Stocks that are cheap for good reason are called value traps because they can sometimes trap value investors into a bad investment. Investing in value stocks is like buying shares at a discount, as they are currently undervalued by the market. This investing strategy assumes that broader markets will eventually wake up to how a company’s intrinsic value might have been mispriced, usually due to market forces beyond a company’s control. Seaboard Corporation is another company you might not have heard of.

If you don’t have the cash to buy a whole share of a pricey stock, you have other options. One way to get exposure to a top stock is to invest in an index fund. Index funds are baskets of stocks that typically track a market index, such as the S&P 500 or the New York Stock Exchange.

In the next section of the article, we will disclose the secret of such a high share price. However, on a cynical basis, Nutrien may benefit because its products now feature intense demand. Still, NTR remains a relatively underappreciated name, making it one of the best value stocks.

When it became apparent that business was waning, Buffet started branching out. Now, Berkshire Hathaway acts as a holding company for the entrepreneur’s ventures, and to say that the company’s investment portfolio is varied would be an understatement. Diamonds, ice cream, railroads, financial services, airlines, batteries, vacuum cleaners — you name it. The holding company, led by billionaire and legendary investor Warren Buffet, reported an operating profit of $10 billion for the second quarter of 2023, an all-time high. At nearly half a million dollars per share, Berkshire Hathaway remains the most expensive stock by share price. There are a few stocks with a price per share that has risen into the four digits.

One of the biggest misconceptions among inexperienced investors is that a high share price indicates a stock is overvalued. You might also want to look at the  TOP most valuable companies list by their market capitalization. There you’ll find the mentioned companies like https://forex-reviews.org/ Apple, Facebook, and Microsoft. Booking Holdings, previously known as The Priceline Group Inc., is the world’s largest travel service provider. The list of company services includes car rental, ticket sales, reservation of offices and hotel rooms, and much more.