The most expensive stocks in the world typically relate to high-quality established companies with good brand recall and solid financials. Those stocks are often very expensive per share, thanks to years of continuous growth and profitability. Generally, wealthy investors buy these stocks as they believe the company will continue to perform well in the future.
Many of the most expensive shares in the world are leaders in their respective industrial sectors. Investing in these stocks can pay off in a big way over a long time frame. Despite their premium prices, a long-term investor should still consider these stocks. The value investors put on quality and market leadership show how the most expensive shares in the world signify financial strength and stability in the market.
Overview of the top 10 most expensive stocks in the world
| Name | Market cap | PE | Share Price |
| Berkshire Hathaway Inc. A | $1T | 14.24 | $697,640.01 |
| NVR Inc. | $30.39B | 20.20 | $9,773.58 |
| Booking Holdings Inc. | $145.40B | 30.60 | $4,370.77 |
| Seaboard Corp. | $2.93 B | 11.81 | $3,056 |
| AutoZone Inc. | $53.45B | 21.09 | $3,053 |
| Fair Isaac Corp. | $50.31B | 107.19 | $2,038.95 |
| Markel Group | $20.39B | 10.37 | $1,594.08 |
| MRF Ltd. | ₹129,769.30 | 26.67 | $1,543.74* |
| Mettler-Toledo | $30B | 37.54 | $1,364.19 |
| Coca-Cola Consolidated Inc. | $11.47B | 26.77 | $1,305.59 |
*MRF Ltd’s share price has been converted to USD for easy comparison
A stock’s continuing success is based solely on evaluating the performance of the underlying business driving the stock, and there is literally no limit on how far a stock can rise. We have listed 10 of the most expensive shares in the world that you can consider investing in.
Berkshire Hathaway Inc.
Warren Buffett’s Berkshire Hathaway has the highest share price in the world. It is a holding company that owns subsidiaries engaged in various business activities. The company conducts business activities that include insurance and reinsurance. Besides, the company also owns sizable stakes in some of the prominent US firms.
NVR Inc.
NVR Inc. is a US home builder based in Virginia. Also known for its modern and pinnacle-notch residential designs, it builds and sells homes under the brand names NV Homes, Heartland Homes, and Ryan Homes. Over the years, its stock price has soared and it has ended up being one of the most expensive stocks.
Booking Holdings Inc
Booking Holdings Inc. provides travel, restaurant online reservations, and related services. The firm’s reservation site Booking.com has over 1.5 million properties listed. After the Chinese company Ctrip, Booking.com held the second-largest worldwide brand share among travel agencies. Via six online brands, this expensive share in the world offers travel services in 220 countries.
Seaboard Corp.
Seaboard Corporation, which has one of the top 10 highest share prices in the world, operates in the transportation and agriculture sectors. The corporation is a Fortune 500 company whose main areas of operation include processing, ocean shipping, and pork production. The company owns 30 container vessels. Seaboard Corp. is located in Merriam, Kansas.
AutoZone Inc.
AutoZone Inc. is a US-based retailer and distributor of automotive replacement parts and accessories. The company has stores located in the US, Brazil, and Mexico.
Fair Isaac Corp.
Fair Isaac Corp. is a predictive analytics and decision management software firm. The company operates in two business segments: Scores and Software. FICO Analytics Workbench, FICO Advisors, and FICO Fraud Solutions are some of its products.
Markel Corporation
Markel Corporation is a Fortune 500 company. It specializes in providing coverage for difficult-to-region for several markets which include ATVs, motorcycles, yachts, environmental pollutants, inland marine insurance for first-class art collections, event cancellation insurance for sporting events, concerts, weddings, and reinsurance for excessive-hazard establishments like oil rigs.
MRF Ltd.
Madras Rubber Factory (MRF) Limited is based in India. The company was in the news last year for being the most expensive stock trading in the Indian stock market. MRF is India’s largest tire manufacturer.
Mettler-Toledo International Inc.
Mettler-Toledo supplies precision instruments and services. The firm makes a variety of precision instruments and offers value-added services to its clients. It belongs to the list of the most expensive shares in the world.
Coca-Cola Consolidated Inc.
Coca-Cola Consolidated Inc. markets distributes, and manufactures non-alcoholic beverages, which are products of The Coca-Cola Company. It is a stock that belongs to the top 10 highest share prices in the world.
What makes a stock expensive?
A stock is said to be expensive when the price of the stock exceeds the value of the company as a whole, either for real or due to investor enthusiasm. Stocks become too expensive due to a combination of factors such as the underlying company’s market-leading position, sound financials, and relatively lower number of shares outstanding. Typically, the price-to-earnings (P/E) ratio of the stock is high in comparison to industry peers or the historical average. If the P/E ratio is high, investors are probably paying too much for each dollar of the company’s earnings, which is a sign of overvaluation.
One of the reasons a stock may be costly is due to inflated growth expectations, speculative buying, and powerful market sentiment that isn’t borne out by revenue, profit margins, and cash flow.
Analyzing the companies behind the most expensive stocks
You can easily understand the rationale for high stock prices by learning about the companies behind them. But most of these companies enjoy long-lasting reputations, and solid financials, and are typically dominant market players. Take Berkshire Hathaway, which is the most expensive share in the world. Warren Buffett’s aversion to stock splits means that its Class A shares trade at astronomical prices, reflecting long-term value and loyal shareholder worth.
The company standing in the market is enhanced by holding diversified assets in various industries including insurance and railroads. Companies such as NVR Inc., the leading US homebuilder, boast of high stock prices thanks to their solid finances, low debt, and robust profitability.
A diversified conglomerate in agribusiness and transportation, Seaboard Corporation’s high stock price is also maintained due to its consistent performance and dominance in niche markets. Historically, these companies demonstrate strong earnings growth, prudent management, and a focus on growing shareholder value. Investor confidence in the company’s ability to generate long-term returns often results in high stock prices, which make these stocks attractive for long-term, high-net-worth investors.
What is the future of the most expensive stocks?
Looking ahead, the most expensive stocks are likely to maintain their higher stock prices. High-priced stocks are well-established, successful firms with promising growth prospects. However, they would need business innovation, market expansion, and profitability for their continued growth.
The companies’ valuation will also be determined by factors like global economic conditions, interest rates, and technological advancement. Additionally, they can split their shares to bring the share price down, making them affordable for a wider range of investors. In general, the most expensive shares in the world are obviously pricey, but they may still serve as attractive opportunities for investors with a long-term horizon.
Risks and benefits of investing in the world’s most expensive stocks
Investing in Berkshire Hathaway and other such expensive shares in the world can be both risky and profitable.
Benefits
Typically, well-established companies with proven business models have expensive shares. A consistent record of good financial performance, growth potential, and market dominance means they deserve the high share price. Although these companies are often market leaders in their areas, they tend towards stable capital appreciation over the long term. Their consistent expansion, strategic acquisitions, and rise in market share may benefit investors.
The most expensive shares in the world have market positions already established and typically have lower volatility than smaller, riskier stocks. Less prone to dramatic price swings, the longer you’re invested, the more secure it feels. Many of these companies also issue dividends, so investors can earn a fair income as well as capital gains.
Risks
Owning even a single share of some of these companies requires a huge amount of capital. Thus, retail or budget investors tend to miss out on investing in these stocks. The high cost also limits portfolio diversification opportunities as these companies are well established, but their size may limit future growth.
The investment can also lead to lower returns as large companies often struggle to keep pace with the fast increase that smaller, nimbler ones can generate. Furthermore, market downturns do not exclude high-priced stocks. The most expensive shares in the world can witness substantial value erosion if the broader market corrects or company fundamentals get hit.
Conclusion
Companies with solid market positions, strong profitability, and investor confidence have the most expensive shares in the world. Stable, mature businesses with strong growth potential, financial performance, and brand value usually back these high-priced stocks. But assess factors such as business fundamentals, growth potential, and risk management if you are considering investing in a pricey stock for long-term benefits.
