In the relentless ups and downs of global stock markets, a select handful of companies regularly make headlines for their extraordinary share prices. The question “what is the most expensive stock?” still sparks curiosity among investors and market watchers alike. The answer, historically and as of mid-2024, is Berkshire Hathaway Inc. (Class A shares), which dwarfs all competitors by market price per share—often appearing in news stories with its astronomical five and even six-figure price tags. But why does one public company’s stock achieve such a high value, and what does this signal about investment, business philosophy, and financial markets at large?
Berkshire Hathaway’s Class A shares (NYSE: BRK.A) have consistently ranked as the world’s most expensive publicly traded stock. As of early 2024, a single BRK.A share has traded for more than $500,000—a figure that overshadows even the priciest blue chips. This eye-popping sum is not the result of a sudden surge but rather the outcome of decades of disciplined growth, canny reinvestment, and a unique approach to shareholder value led by Berkshire’s iconic CEO, Warren Buffett.
Warren Buffett’s steadfast refusal to split Berkshire Hathaway’s stock is central to the narrative. Unlike other giants—such as Apple, Tesla, or Amazon—which have split their shares to increase liquidity, Berkshire’s approach is rooted in philosophy as much as finance.
“By not splitting the stock, Buffett has deliberately built a shareholder base composed of long-term, committed investors rather than speculative traders,” says Daniel Roberts, senior market analyst at Morningstar.
Berkshire Hathaway’s portfolio spans insurance, railroads, utilities, consumer brands, and even tech stocks. Consistent reinvestment of earnings and acquisition of profitable companies have compounded returns, resulting in a stock price that reflects decades of cumulative value creation.
Historically, companies choose stock splits to make shares more accessible and liquid. Berkshire’s astronomical share price is not just a matter of pride or branding; it’s an intentional strategy. Buffett views high-priced shares as a deterrent to short-term speculation—ensuring those who invest have a vested interest in the company’s long-term health.
This approach has produced a stable investor base and a reputation for reliability and prudent capital allocation. In many ways, the price tag serves as a metaphor for the functional value that accrues when a company is built for the long haul.
A company’s share price is determined, in the broadest sense, by dividing the market capitalization (total value of all outstanding shares) by the number of shares outstanding. Unlike peers, Berkshire Hathaway has never split its Class A shares, resulting in a far lower total share count and, thus, a much higher price per individual share.
Other firms often split shares to maintain affordability for retail investors, but splits do not affect the company’s market capitalization or intrinsic value. Rather, they reset the “per unit” cost at a new, lower level. Berkshire’s method essentially banks on investor understanding—the idea that price per share is not an inherent measure of company quality, but rather a function of historical capital decisions.
To put Berkshire’s numbers in perspective, companies like NVR Inc. and Seaboard Corporation also trade at several thousands of dollars per share, but none approach Buffett’s behemoth. Well-known tech titans such as Alphabet or Amazon have seen aggressive per-share prices in the thousands, only to enact splits periodically to maintain retail investor engagement.
For example, in 2022, Alphabet executed a 20-for-1 stock split, dropping its share price from well over $2,000 down to a more widely accessible level, while keeping overall corporate value unchanged.
A high share price, although not correlated with business fundamentals, can craft a certain mystique or “elite” status. For average investors, owning just a fraction of a Berkshire Hathaway share becomes akin to participating in an exclusive club—one populated by those with the means and the mindset to think across decades.
Fractional share trading on platforms like Robinhood or Fidelity has blunted this effect somewhat, enabling broader participation. Yet, the psychological “weight” of joining the ranks of Berkshire’s shareholders remains a powerful narrative in financial circles.
A high per-share price can act as a natural filter for speculative trading, potentially reducing share price volatility. Companies with lower share prices often see heightened trading activity, which may amplify price swings. Buffett’s strategy aims squarely at promoting long-haul stewardship rather than quick flips.
The higher the share price, the less likely the stock will change hands frequently, particularly among smaller investors. This reduced liquidity can sometimes translate into less daily volume, but for Berkshire—given its institutional following and impressive performance history—this has rarely been a hurdle to capital flows or reputation.
For most companies, a high share price does not equate to higher inherent value—context matters. Stock splits, mergers, and acquisitions can all affect the per-share number without altering a business’s underlying fundamentals.
Savvy investors look beyond sticker shock to analyze market cap, earnings, book value, and growth prospects. In other words, it is the company’s ability to generate profits and compound value—not the share price alone—that should drive investment decisions.
Berkshire Hathaway’s story is intertwined with Buffett’s own investment persona. As succession looms on the horizon, both Berkshire’s share price and its sustained value creation are under the microscope. Many analysts believe the company’s decentralized operating model, strong brand equity, and disciplined capital allocation will preserve its market reputation, even if succession brings changes at the top.
Consider Amazon’s and Apple’s periodic stock splits—these moves made shares more accessible and attracted a wave of new retail investors. In contrast, Berkshire Hathaway’s approach attracts a unique investor profile, often institutional or ultra-high-net-worth individuals seeking stability over spectacular short-term gains.
Berkshire Hathaway Class A shares illustrate what happens when a company captures extraordinary value over decades and refrains from the usual playbook of stock splits. While the per-share price is impressive, its greater significance lies in the business philosophy and shareholder alignment it represents.
For investors and business leaders, the lesson is clear: stock price is just one data point. Understanding the reasons behind valuation—and what kind of investor a company is hoping to serve—is crucial.
Berkshire Hathaway (Class A shares) holds the title as the world’s most expensive publicly traded stock, with share prices exceeding $500,000 as of mid-2024.
Warren Buffett’s long-standing policy is to avoid stock splits in order to attract long-term investors, discourage short-term trading, and emphasize a commitment to sustainable value creation.
Not necessarily. Stock price is a function of many factors, including whether a company has done splits, its total shares outstanding, and its overall market cap. Investors should evaluate company fundamentals, not just the share price.
Yes, thanks to the creation of Berkshire Hathaway Class B shares and the rise in fractional share trading, individual investors can participate without needing to buy a full Class A share.
Expensive stocks are not inherently less risky. Risk depends on the company’s business, market environment, and financial health, not just how high or low the share price is.
Firms like NVR Inc. and Seaboard Corporation have high per-share prices, though none approach Berkshire Hathaway’s level. Many other companies prefer to split their shares to maintain retail accessibility.
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