If you’re looking to invest in some of the biggest companies in the world, you’ll likely find them on the US Stock market. But is it worth forking out thousands of dollars to own some of the big names in your portfolio?
In this article, we look into the highest-priced stocks in America and what value they could add to your portfolio. It’s worth noting that the share price of a company may not always reflect the value of the company too, as the scarcity of the shares may drive up the demand and price associated with them.
The list below only looks at the top five highest shares based on price on the stock exchange (not including over the counter markets) and is accurate as of the time of publishing.
Berkshire Hathaway Inc. (BRK.A) – Share price US$426,198
Berkshire Hathaway is one of the most expensive shares in the world and by far the most expensive on the US exchange. Berkshire started as a textile company and was bought by Warren Buffett in 1965. Buffett as the CEO famously refused to split the company’s shares which is what most companies do to keep the share price low and accessible to trade. Buffett wanted to keep the share price high to purposefully make the stock harder to quickly buy and sell (i.e. less trading) to reduce the volatility of the stock.
If you want a slice of the action but don’t have a spare US$427,000+ to invest, you can still invest in the smaller share class Berkshire launched in 1996 – BRK.B. The lower price begins at US$281.59 which makes it make more accessible for people to buy a small part of the company.
NVR Inc. (NVR) – Share price US$5,160
NVR may not be widely known to Australian audiences as it mainly operates on the East Coast of the United States. The company operas as a mortgage banking and title services business, as well as engaging in home construction. It operates under the brands Ryan Homes, NVHomes and Heartland Homes, often acquiring finished land lots that are ready for building. This company has also never split its stock, leading to a higher share price.
Related reading: Top US Stocks by Market Cap
Amazon.com Inc. (AMZN) – Share price US$3549
Amazon started from humble beginnings, opening as an online book store before expanding to be one of the World’s largest retailers and selling almost anything you can think of. Besides the eCommerce platform, Amazon is a big player in cloud computing through its Amazon Web Services. Despite having gone through three stock splits, the company is still largely valuable through its valuation – one of a few companies to ever be valued at over US$1 Trillion.
Alphabet Inc. (GOOG) – Share price US$2960.94
Alphabet (originally Google Inc.) started as a search engine in 1998 and has since become the globe’s largest search engine that is ubiquitous with most internet users. The company restructured in 2015 and continues to drive strong performance with revenue being generated from the search engine, YouTube, Google Play, Google Cloud, Chrome, and their Android mobile operating system.
Booking Holdings (BKNG) – Share price US$2,366.38
This company is one of the world’s largest travel agencies that operate solely online. The following websites form the operations of the company – Priceline.com, Booking.com, Agoda, OpenTable, RentalCars.com, Kayak, and Momondo Brands
Should you invest in US Stocks?
It is important to bear in mind that past performance is not an indication of future performance. And, before investing in any stock it is important to thoroughly research the company, and ensure this investment aligns with your goals and timeframe. If ever in doubt, seek advice from a professional financial adviser.
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