Many of the most sought-after stocks are accompanied by a substantial cost. Many people associate the value of a stock with its price. The more expensive the price, the better, and as a result, the more sought-after the company is. A typical investor may not have the funds to purchase just one share from these companies.
Retail investors must know which stocks might be difficult to trade due to their price per share. It is also important to note the fact that few brokers give their clients the possibility to buy fractional shares. The market capitalization of a business is the result of its share price, and a total number of shares outstanding and a company's share price isn't a reliable indicator of whether the company is worth more or less.
Berkshire Hathaway
- Market capitalization: $619.9 billion
- Stock price: $421,800.00
Berkshire Hathaway has the highest-priced shares among all U.S. companies and is one of the biggest companies worldwide, always placing in the top 10 according to market value. Berkshire was initially an apparel company that was then bought by Warren Buffett and is now a holding company to invest in his investments. Its holdings include those of the GEICO insurance company, and BNSF Railway.
Buffett famously refused to split Berkshire's shares. It's something that businesses usually do to allow them to sell their shares. As Berkshire's CEO, he maintained the price high to make it more difficult to trade and deter short-term trading, which could increase the volatility of the stock. The company introduced a newly-created share class in 1996 (BRK.B) at a lower cost. This allows buyers to buy smaller pieces from the business. The company will trade for a less affordable $280.83 by 2022.
NVR
- Market capitalization: $14.38 billion
- Stock price: $4,370.80
NVR is a mortgage and home building company with its headquarters in Virginia. The homebuilding divisions construct as well as sell houses. The division comprises three brands: Ryan Homes, Heartland Homes and NVHomes. NVR's Building Product division assists the homebuilding business by providing and delivering construction equipment. The company has two branches within the mortgage bank division. NVR Mortgage offers services to homeowners who are buying homes.
Seaboard
- Market capitalization: $4.35 billion
- Stock price: $3,750.01
Seaboard is an international corporation that trades in agricultural products and grains such as pork, sugar, alcohol, and even sugar. Seaboard also handles milling and trading in commodities. It grew through acquisitions, beginning with the first in 1918 when it bought the first mill for flour in Kansas. It joined forces with Hathaway Industries in 1959 and was a public corporation. Then, it was renamed Seaboard Allied Milling Corporation. The company is headquartered in Kansas; Seaboard now operates with offices all over the globe through a variety of subsidiaries as well as non-controlled, not-consolidated affiliates.
Alphabet
- Market Capitalization: $1.58 trillion
- Stock Price: $2,403.37
Alphabet began to be created in 1998, as the name suggests. It was the first company behind search engine Google was then the world's most used search engine. In 2015, it switched its name to Alphabet and established a brand fresh holding firm. Most of Alphabet's revenues come from different forms of advertising, such as branding and performance advertising. The rest comes from the sale of apps and in-app purchases, as well as hardware and charges from licensing and other services provided by Google's web search, YouTube, Google Play, Chrome browser, and the Android smartphone operating systems.
AutoZone
- Market capitalization: $42.53 billion
- Stock Price: $2,182.37
AutoZone Inc sells and distributes auto accessories and replacement parts. The company offers the opportunity to sell commercial credit, the delivery of parts, and other products. They also offer automotive repair and diagnostic programs under the ALLDATA brand. In May 2022, AutoZone owned 6,115 retail stores across the United States, 673 stores in Mexico, and 58 stores in Brazil. AutoZone was established in 1979 and is located in Memphis, Tennessee.
Conclusion
The price of shares of certain companies could render investing impossible for investors of average size. Berkshire Hathaway never split its Class A shares due to its desire to maintain its value and not increase the risk of volatility, resulting in a price per share in excess of $400,000.
Price isn't a reliable measure of value or future growth. While this may be true for certain companies, it might differ for every company's shares. Certain companies issue only limited shares, which increases market value. Before investing, ensure you examine the whole image, including business models, products, customers' offerings, and earnings.