Top 10 Highest-Priced Stocks

You can calculate a company’s stock price by dividing its market cap by the total number of outstanding shares. Many factors contribute to Berkshire Hathaway’s stock price, but one of the reasons its Class A shares are so expensive is because Warren Buffet opted against a stock split. In a stock split, the company increases the number of shares to improve the stock’s liquidity. If you’re considering investing in the stock market, one of the first things you might look at is a company’s share price. The share price is the amount you’ll pay to purchase one share of that company’s stock. 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 https://www.forex-reviews.org/ to investors.

• It has also branched out into services, including its Apple TV+ streaming service.
• If you want to buy one stock of his company, you’ll need to remortgage your home.
• Tech giant Apple is proof of how far high-quality products and strong brand loyalty can go.
• 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.
• Get step-by-step guidance on investing in Apple stock and learn the ins and outs of this technology company.
• Novo Nordisk’s ability to innovate is perhaps its greatest strength.

NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. White Mountains Insurance Group (WTM) was founded in 1980 and has since grown to be one of the leading companies engaging in asset and business acquisitions. With a market cap of $4.94 billion and a revenue of $2.62 billion in 2024, it’s one of the prime examples of a relatively smaller company having an incredible share value. As market cap is calculated by multiplying the total number of a company’s outstanding shares and the price per share, two factors can alter the figure.

A company’s market capitalization is equal to the total value of its outstanding shares. Market cap can be calculated by multiplying a company’s stock price by its shares outstanding. For example, a $10 stock with 1 billion shares outstanding would have a market cap of $10 billion. When a stock price rises too high, the company’s board of directors will often choose to undergo a stock split, reducing the share price but at the same time increasing the number of shares outstanding.

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Berkshire Hathaway is the conglomerate run by legendary investor Warren Buffett. The company has interests in a wide array of industries including insurance, railroads, retailing and manufacturing. Berkshire’s investment portfolio includes stakes in companies such as Apple, Coca-Cola, American Express and Chevron. Semiconductor company Nvidia crossed the trillion-dollar mark in May 2023, and quickly climbed to the top spot as investors bid up its shares in anticipation of a sustained boom in AI.

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Berkshire Hathaway has been led by chair and CEO Buffet since the 1960s. A company’s market capitalization is an essential metric that is used by investors across the globe to assess a company’s size and the market valuation of its outstanding shares. Often termed as ‘market cap’, the figure indicates a company’s overall size and rank in the market. In fact, many companies purposely keep their stocks within certain ranges, often $20 to $120 per share. They’ll strategically use a stock split to keep their stock at a lower price and to make it easier for investors to buy some shares, meaning they’ll need fewer dollars to invest.

You can learn more about GOBankingRates’ processes and standards in our editorial policy. It’s important to remember that while a high share price might result from significant growth in the past, it’s not always a reliable indicator of the best stock to buy for the future. That portfolio consists of well-known companies, with Apple constituting its largest holding in terms of market value and Bank of America topping the list in terms of number of shares owned. A 2003 paper by Cliff Asness, founder of fund firm AQR, criticised the use of Treasury yields as an “irrelevant” nominal benchmark and said the equity risk premium failed as a predictive tool for stock returns. The traditionally constructed equity risk premium is sometimes known as the “Fed model”, because Alan Greenspan appeared to refer to it at times when he was chair of the Federal Reserve. Here are a few of the other most expensive stocks on the U.S. market.

Q. What does market cap indicate?

It must be noted that the world’s 10 most valued companies have market capitalizations of over $1 trillion each. For example, Berkshire Hathaway reported earnings of $59,460 for each Class A share in 2021 against its current stock price of about $550,000. Think of a company like a pizza, where you can cut any number of slices. The size (stock price) of any individual piece doesn’t tell you much about the size of the whole pizza pie, however. There’s literally Best monthly dividends no limit on how far a stock can rise, and a stock’s ongoing success is determined by the performance of its business. In general, a high stock price indicates a business has been successful, though it’s no guarantee that it has been.

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The editor Chris Davis owned fractional shares of BRK.A at the time of publication. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.

The list of company services includes car rental, ticket sales, reservation of offices and hotel rooms, and much more. This fund gives you exposure to the 500 largest public companies, including Meta. Your $500 goes a lot farther, and you minimize your investing risk by diversifying your portfolio.

White Mountains Insurance (WTM)

• NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances.
• The average investor may not be able to afford a single share of the highest prices stocks from the following companies.
• For this article, GOBankingRates defined “expensive” by the quoted stock price.
• Chipotle is also one of the first chains of restaurants of the Fast Casual concept, which implies the speed and convenience of service as in fast-food restaurants.
• Chocoladefabriken Lindt & Sprüngli AG (or Lindt for short) is a Swiss chocolate company specializing in confectionery and chocolate production.
• Their stock price rose from $250 in 2014 to an all-time high of $1700 in 2021 (adjusted for splits).

But fears of a recession or economic slowdown can send stock prices tumbling. Robert is a senior editor at Newsweek, specializing in a range of personal finance topics, including credit cards, loans and banking. Prior to Newsweek, he worked at Bankrate as the lead editor for small business loans and as a credit cards writer and editor. He has also written and edited for CreditCards.com, The Points Guy and The Motley Fool Ascent.

MicroStrategy is a software solutions company that operates online through an app, online sales or the cloud. To help companies scale up and achieve their visions, MicroStrategy harnesses artificial intelligence, otherwise known as AI. Conversely, $2,309.60 per Fair Isaac share may appear expensive in comparison, with its much smaller earnings — about $6 in the most recent quarter — relative to share price. Earnings per quebex share have more recently been more volatile, and they saw negative growth in 2022. However, Buffett wrote in a February 2023 letter to shareholders that the company “will always hold a boatload of cash and U.S. Despite the popularity of the brands Berkshire Hathaway owns, many know it best for its stock holdings.