The Jaw-Dropping Titans: What Is The Highest Stock Price in America (and Why It Matters!)

Have you ever wondered just how high a single stock can go? While most of us are busy cheering when our $50 stocks climb to $60 there’s a whole different league of stocks trading at prices that’ll make your eyes pop out! Let’s dive into the fascinating world of the most expensive stocks in America – and believe me these prices are gonna shock you!

The Reigning Champion: Berkshire Hathaway (BRK.A)

If you’ve ever dreamt of owning a piece of Warren Buffett’s empire, you better have deep pockets! Berkshire Hathaway’s Class A shares (BRKA) currently hold the title for the highest stock price not just in America, but in the entire world.

Current Price Over $744500 per share (as of recent market data)

Yes, you read that right – over SEVEN HUNDRED THOUSAND dollars for a SINGLE share! This is up from about $625,000 per share in February 2024. That’s more than many people’s homes cost!

The crazy thing is, Warren Buffett has deliberately chosen never to split these shares. Why? He wanted to attract long-term investors rather than short-term traders who might increase the stock’s volatility. In his mind, the high share price acts as a filter, ensuring only serious, committed investors buy in.

I remember when I first learned about BRK.A’s price – I literally spat out my coffee! My friend was like, “Dude, you could buy a Lamborghini or ONE share of Berkshire.” Wild, right?

The Elite Club: America’s Highest-Priced Stocks

BRK.A isn’t alone in the stratosphere. Here are the other members of this exclusive high-priced stock club:

2. NVR, Inc. (NVR)

Current Price: ~$7,336.81 per share

NVR is a homebuilding and mortgage banking company that, similar to Berkshire, has resisted splitting its stock. They operate through brands like Ryan Homes, NVHomes, and Heartland Homes.

3. Booking Holdings (BKNG)

Current Price: ~$4,958.40 per share

You might know them better through their brands like Booking.com, Priceline, and KAYAK. This online travel giant has seen its share price soar as digital travel booking became the norm.

4. Seaboard Corporation (SEB)

Current Price: ~$3,809.01 per share

Seaboard deals in grains, agricultural products, and commodity trading. They’ve built their empire through a series of strategic acquisitions since their first flour mill purchase in 1918.

5. AutoZone (AZO)

Current Price: ~$3,728.09 per share

This auto parts retailer operates thousands of stores across the United States, Mexico, and Brazil. Their high share price reflects years of steady growth and a strategy of share repurchases.

Wait, But Why Are These Stocks So Expensive?

You might be wondering: “Why the heck would any company let their share price get so ridiculously high?” Great question! There are several reasons:

1. They Refuse to Split

The most common reason is simply that these companies have deliberately chosen NOT to split their stock. A stock split is when a company decides to increase the number of shares while decreasing the price proportionally (like turning one $100 share into two $50 shares).

2. Limited Float (Available Shares)

Some of these companies have a relatively small number of shares available for trading. When supply is limited but demand is high, prices go up!

3. Share Buybacks

Companies like AutoZone have aggressively bought back their own shares over time. This reduces the number of shares on the market, potentially driving up the price of remaining shares.

4. Strong Performance

Let’s not forget the obvious – many of these companies have delivered exceptional performance over extended periods. Their high share prices reflect decades of growth and profitability.

Why Stock Price Alone Doesn’t Tell the Full Story

Here’s a crucial point that many new investors miss: a high share price doesn’t necessarily mean the company is more valuable overall than others with lower share prices.

Market capitalization (share price × number of outstanding shares) gives you the total value of the company. For example:

• Company A: $1,000 per share × 1 million shares = $1 billion market cap
• Company B: $100 per share × 100 million shares = $10 billion market cap

In this example, Company B is actually 10 times more valuable than Company A despite having a much lower share price!

Berkshire Hathaway, with its massive share price, has a market cap of about $1.07 trillion. But Apple, with a much lower share price, has been valued even higher at times due to having MANY more outstanding shares.

The Historical Perspective: How Did We Get Here?

Stock prices haven’t always been this astronomical. Let’s look at some interesting historical points:

• In the early 1980s, Berkshire Hathaway traded at “just” around $500 per share
• By 1992, it hit $10,000
• In 2006, it crossed $100,000
• In 2021, it surpassed $500,000
• And now, it’s cruising past $700,000!

This shows the incredible power of compound growth over time. If you’d bought just ONE share of BRK.A in the early 80s, you’d have seen your investment multiply by nearly 1,500 times!

Can Regular Investors Access These High-Priced Stocks?

“But I don’t have $700,000 lying around for one stock!” I hear ya! Here are some ways regular investors can get a piece of these expensive pies:

1. Fractional Shares

Many modern brokerages now offer fractional shares, letting you buy a portion of a share. So instead of needing $744,500 for one BRK.A share, you might invest $744.50 for 1/1000th of a share.

2. Lower-Priced Share Classes

Some companies offer alternative share classes. Berkshire Hathaway’s B shares (BRK.B) were created in 1996 specifically to make the company more accessible to retail investors. They currently trade at around $311.52, a much more manageable price point.

3. ETFs and Mutual Funds

Many funds include these expensive stocks in their portfolios, giving you indirect ownership at a much lower cost of entry.

The Psychological Impact of High Stock Prices

There’s something psychologically powerful about high stock prices. They can create:

1. Perception of Exclusivity: High prices can make a stock seem more prestigious
2. Investor Discipline: As Buffett intended, high prices tend to attract more patient investors
3. Media Attention: Extreme prices generate headlines and awareness

But they can also create barriers:

• Reduced liquidity (fewer shares changing hands)
• Limited access for smaller investors
• Potential for bigger price swings on lower volume

How Do Stock Prices Get That High? A Timeline Example

Let’s imagine a company that goes public at $20 per share and never splits its stock:

• Year 1: IPO at $20
• Year 5: Strong growth pushes it to $100
• Year 10: Continued success and it reaches $500
• Year 20: Market leadership and innovations drive it to $2,000
• Year 30: Compound returns push it to $10,000
• Year 40: Long-term dominance results in $50,000

This isn’t even accounting for share buybacks, which could accelerate the price increase even further!

The Future: Will We See a Million-Dollar Stock?

If current trends continue, Berkshire Hathaway could potentially become the first stock to hit the $1 million mark per share. Based on historical growth rates, this could happen within the next few years.

Some financial analysts are already placing bets on when this milestone will be reached – I’m thinking sometime in 2026, but we’ll see!

Final Thoughts: What This Means For You

So, what’s the takeaway here for regular investors like us?

1. Don’t be intimidated by high prices: Remember that the share price alone doesn’t indicate value – market cap does
2. Consider fractional shares: They’re a game-changer for accessing high-priced stocks
3. Look beyond the price tag: Focus on fundamentals, growth potential, and valuation metrics
4. Think long-term: These astronomical prices developed over decades of compound growth
5. Diversify wisely: Don’t put all your eggs in one expensive basket!

High stock prices can be fascinating to observe, but they shouldn’t distract you from sound investment principles. Whether you’re investing in a $7 stock or a $700,000 stock, what matters most is the underlying business quality and growth potential relative to the current valuation.

As Warren Buffett himself might say, “Price is what you pay, value is what you get.” And that wisdom applies regardless of how many zeros are in the share price!

What do you think? Would you ever buy a fractional share of Berkshire Hathaway, or would you rather own full shares of more affordable companies? I’d love to hear your thoughts in the comments!

FAQs About High-Priced Stocks

Q: Does a high stock price mean the company is overvalued?
A: Not necessarily! The stock price alone doesn’t indicate valuation. You need to look at metrics like P/E ratio, PEG ratio, and other fundamentals.

Q: Why don’t all expensive stocks just split?
A: Some companies believe high prices attract the right kind of investors or create prestige. Others, like Berkshire, explicitly want to discourage short-term trading.

Q: Can stock prices theoretically go infinitely high?
A: In theory, yes, though practical market forces and economic realities would likely prevent truly astronomical prices.

Q: Do high-priced stocks perform better than lower-priced ones?
A: There’s no inherent correlation between share price and performance. A $5 stock could outperform a $5,000 stock depending on the underlying business.

Q: What happens if I can’t afford a full share?
A: Many brokerages now offer fractional shares, letting you invest a specific dollar amount rather than purchasing whole shares.