The most expensive US stocks 2023
Investors often associate the value of shares with their exorbitant prices, that is, the higher the price, the greater the value of the company, and thus the higher the demand for it. Remember that the company’s market value is the product of both its share price and the total number of outstanding shares, which means that the share price alone is not sufficient to determine the actual value of the company. However, these investor beliefs are still very important when it comes to choosing the right stocks to invest in. This article will provide you with five of the most expensive US stocks, as of the close of trading day January 11, 2022.
1- Berkshire Hathaway
- Share price: $480,340
- Market value: $714.9 billion
Berkshire Hathaway (BRK.A) is the most valuable US stock company, consistently ranking in the top 10 companies by market capitalization. The company was originally a textile company, before Warren Buffett bought it and turned it into a holding company for his other investments such as GEICO Insurance, BNSF Railroad, and Lubrizol Chemical Company.
As the company’s CEO, Buffett refused to split Berkshire stock, something companies usually do to make their shares easier to trade, and he also kept the price high to keep out speculators and short-term traders. But the company launched a new stock class in 1996 (BRK.B) at a lower price, which allows the rest of the individual investors to buy small portions of it.
2- NVR
- Share price: $5,567.49
- Market value: $19.39 billion
NVR (NVR) is a homebuilder and mortgage banking company. The company is originally headquartered in Virginia, but reaches consumers in 33 cities in 14 states, including Maryland, New York, North Carolina, Virginia, Ohio, Indiana, Illinois, South Carolina, Pennsylvania, Tennessee, Florida, Delaware, West Virginia and New Jersey, in addition to D.C.
The HomeBuilding and Sales Division includes three different brands, Ryan Homes, NVHomes, and Heartland Homes, while the Building Products division provides and delivers building supplies.
The company has two different units under the Mortgage Banking Division. NVR Mortgage provides services to home buyers, while NVR Settlement Services provides settlement and title transactions for its homebuilder unit.
Just like Berkshire Hathaway, NVR did not split its stock making it one of the companies with the most valuable US stocks.
3- Seaboard
- Share price: $3,994.98
- Market value: $4.64 billion
Third in the list of the most expensive US stocks Seaboard (SEB) is a multinational company operating in the grain and agricultural products sector, including pork, sugar and alcohol, in addition to trading commodities and milling
This company built itself through acquisitions that began in 1918 when it acquired its first flour mill in Kansas, then merged with Hathaway Industries in 1959 and became a public company, changing its name to Seaboard Allied Milling Corporation.
The company was originally headquartered in Kansas, but now operates in offices around the world through a series of subsidiaries.
4- Amazon
- Share price: $3,307.24
- Market value: $1.68 trillion
Amazon (AMZN) began as an online book retailer, then expanded to become the world’s largest online retailer, selling everything from home goods and electronics to beauty products, clothing, and more.
In addition to its massive e-commerce ventures, Amazon has a dominant position in the cloud computing services industry via Amazon Web Services, by selling a series of products such as Alexa personal assistants, tablets, e-readers, as well as Fire TV and so on.
Amazon is one of the few companies whose valuation exceeds a trillion dollars, and it is also among the top five most valuable companies on earth, which partly explains why it is on the list of the most valuable American stocks.
5- Alphabet
- Share price: $2,800.35
- Market value: $1.86 trillion
Alphabet (GOOG) was founded in 1998 as the Google search engine company, and then it became the most popular search engine in the world. After a reorganization in 2015, it changed its name to Alphabet and created an entirely new holding company.
A significant amount of Alphabet’s revenue is derived from various forms of advertising, and the remainder is derived from app sales, in-app purchases, and hardware, as well as licensing fees and services from Google Search, YouTube, Google Play, Google Cloud, Chrome, and the Android mobile operating system.
Frequently asked questions about top US stocks
Does the company’s share price indicate its value? A company’s share price simply represents the current price that investors are trading at, meaning it does not paint an accurate picture of the company’s overall value. However, we can consider it a proportional value to the value of the company because it indicates the percentage change in its market value.
What are the most expensive stocks in the world? Berkshire Hathaway is the most valuable stock in the world. This is due to the company’s CEO Warren Buffett’s decision to reject the split in order to prevent short-term trading.
What is the biggest profit made by a stock in one day? Volkswagen stock had its biggest gain in a single day in October 2008 after an announcement by automaker Porsche. Shares of the German automaker rose to 93% on Oct. 28 after Porsche said it had a 74% stake in the company, which was acquired through derivatives trading.
Summary
The share prices of some companies may make investing in them impossible for the average investor. Berkshire Hathaway never split its Class A stock because it wanted to preserve its value and stay out of volatility as much as possible, which sent the price over the $400,000 ceiling.
As mentioned earlier, you need to be careful about falling into the trap of pegging the price to the total value of the company. Be sure to look at the entire company profile, including business models, product offerings, profits, and all other factors before you make your final decision.
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