The Most Expensive Stock – Is It Worth the Money?
The most expensive stock is Berkshire Hathaway Inc, led by CEO Warren Buffett. Berkshire Hathaway's stock price is currently sitting around $350,000 per share.
The next closest stock in the Fortune 500 list, the S&P 500 index, etc., is Lindt & Sprungli AG, the well-known Swiss chocolate company. Their stock price is around $10,000 per share right now. We'll talk about the rest of the top five below.
As most companies grow, they decide to split their stocks. Each one stock worth $10 becomes two stocks worth $5 each. This splitting allows stocks to be traded more easily, just like how it's easier to buy groceries with $10 bills than with $100 bills. Smaller units make trading easier.
However, Berkshire Hathaway did launch “B class” shares in 1996. These shares provide the same result as a stock split. The B shares are worth 1/1500 of an A share. While the A shares cost ~$350K, the B shares only cost ~$230. That's much more affordable for the average investor.
Berkshire Hathaway A shares were worth $7.50 each in 1962. That's when a young Warren Buffett first invested in the company. Buffett gained a controlling percentage of the company in 1965 and has been their CEO ever since. The company has grown 46000 times bigger since then.
And because Berkshire has never split their stock's A shares, they are the most expensive stock on the market. But what exactly does Berkshire Hathaway do?
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