Most expensive stock in the world costs $200k per share

Generally speaking, stock investing is not limited to the rich. We’ve highlighted before that one can start investing with only a few thousand pesos. In the Philippines, there really is no minimum needed since trades are dependent on the “board lot” — and with only a few thousand pesos, one can start joining the Philippine stock market already.

But there are stocks that are so expensive that very few people are able to buy it. Take for example, the most expensive stock in the world — that of Berkshire Hathaway traded in the New York Stock Exchange (NYSE) which, for the first time yesterday, has breached the $200,000 stock price level.

Yup, each share costs $200,000 — roughly translating to P8.7 million. We’re talking about one share only, that is, if you want to buy just one share of stock of Berkshire Hathaway (BRK-A), you must pay P8.7 million.

Want to buy 10 shares? Prepare $2 million or P87 million. Wow.

What is Berkshire Hathaway?

warren-buffett-berkshire-haBerkshire Hathaway is a conglomerate holding company in the United States primarily owned and managed by Warren Buffet, a popular believer of the “value investing” theory and one of the world’s richest people. (See lists of Richest People here)

As a holding company, Berkshire Hathaway invests, acquires or manages companies and receives a share in the company’s profits depending on its equity stake in that company.

Berkshire currently owns the following companies (100%-owned):

  • GEICO (auto insurance company)
  • BNSF Railway (2nd largest freight railroad in the US)
  • Lubrizol (chemical and special additives company)
  • Fruit of the Loom (clothing manufacturer)
  • Dairy Queen (soft-serve yogurt and ice cream)
  • Helzberg Diamonds (jewelry retailer)
  • FlightSafety International (provider of professional aviation training and simulation equipment)
  • NetJets (sale and rental of private business jets)

The company also has significant holdings in Heinz, Mars, American Express, The Coca-Cola Company, Wells Fargo, and IBM.

Berkshire started as a textile manufacturing company in 1839 and in 1964, Buffett acquired majority stake in the company and started turning it into a holding company.

$200,000 per share

Berkshire Hathaway (BRK-A) has long since held the record of the world’s most expensive, but yesterday, it gained another record when the stock breached $200,000 for the first time.

It closed at $202,850.00 per share.

berkshire-hathaway-most-expensive-stock

Again, this is the price of just 1 share — way more expensive than the average household income in the United States per year (around $80,000) and almost costing the price of a house in the US (median US home prices is at $233,000).

In contrast, the second most expensive stock in the US costs “only” $2,902 per share — that of Seaboard Corp. (SEB) — just a fraction, 1.4% to be exact, of the price of Berkshire Hathaway.

In the Philippine Stock Exchange, the most expensive stock is PLDT (TEL) which each share trading at P3,200.00 or $73 apiece. (See also: Most Expensive Stocks in the PSE)

Value Investing

Warren Buffett is a firm believer of “value investing” — the strategy of buying stocks or companies that appear underpriced through some form of fundamental analysis.

He rarely trades or flips stocks and instead invests in the company for the long-term. Warren Buffett’s views on value investing can be summarized by some of his well-known quotes below:

[box type=”tick”]On Holding Period[/box]

“Our favorite holding period is forever.”

– (Letter to Berkshire Hathaway shareholders, 1988)

[box type=”tick”]Buying Underpriced Stocks[/box]

“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”

– (Chairman’s Letter to Berkshire Hathaway shareholders, 2008)

[box type=”tick”]Investor vs. Speculator[/box]

“If you’re an investor, you’re looking on what the asset is going to do. If you’re a speculator, you’re commonly focusing on what the price of the object is going to do, and that’s not our game.”

– (Berkshire Hathaway Annual Meeting, 1997)

Read these other awesome, useful posts!

About the Author

blank

PSEi support seen at 6,200 and 6,000 amid weaker Peso

In a not-so-surprising move, the U.S. Federal Reserve (Fed) yesterday raised interest rates by 75 basis points (bps) or 0.75% in a bid to tame rising inflation in the United States. This was the third consecutive 0.75% rate hike by the Fed, which brings the federal funds rate, the central bank’s benchmark interest rate, to ... Read more
blank

Official SWIFT Code of BDO, BPI, Metrobank, Philippine banks

When sending cash remittances or wire transfer to a bank account in the Philippines (such as BDO, BPI, Metrobank, Landbank, DBP, etc.), you’ll surely need the SWIFT Code of the bank. Look no further because you can find all the SWIFT Codes you need in this list! Make sure you’re using the right bank code ... Read more
blank

How to Waive your Credit Card Annual Fee (BDO, BPI, Metrobank, RCBC, Citibank, UnionBank)

Without a doubt, one of the most annoying fees that credit cardholders have to pay is the annual fee. Majority of cardholders are familiar with this fee and majority of us likely pay this grudgingly year after year after year. In the case of my credit card with BPI (Bank of the Philippine Islands), I’m ... Read more
blank

Why Filipinos do not become business owners or entrepreneurs

For a majority of Filipinos, entrepreneurship does not seem to be a typical, expected path. This is not surprising, considering that in school, students are primarily taught to become employees after graduation. Students train for years to become staff workers, reporting to a supervisor, and just waiting to receive their wages or salaries every month. ... Read more
blank

My experience investing in Mutual Funds in the Philippines

I started investing in mutual funds when I was 22 years old. As an Overseas Filipino Worker (OFW) then, I was fortunate to be able to save some money at that young age because of my work abroad. One time while I was on vacation in the Philippines, I saw a large billboard in EDSA ... Read more
blank

Income Tax Tables in the Philippines (2022)

The Philippines’ new tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion, was signed into law on December 19, 2017 and its implementation began on January 1, 2018. What are the new income tax rates under the TRAIN law? How will TRAIN affect income taxes of individuals and corporations? How is the ... Read more
blank

PSE Stocks Performance under each Philippine President (1987-2021)

Did you know that Philippine stocks were able to achieve an astounding growth of 800% in a span of 30 years? From 1987 until 2018, the Philippine Stock Exchange index (PSEi) rose from 1,000 points to a peak of 9,000 points — generating a return of 800% over 30 years. (The PSEi is an index ... Read more
blank

SSL 2022: Salary Increases for Teachers, Nurses, Gov’t Employees

Good news to all government employees! There’s a new round of salary increases beginning January 1, 2022! Millions of employees of the Philippine government — including public school teachers, nurses and staff of government hospitals, and workers in local and national government agencies, etc. — will be getting an automatic salary adjustment this 2022 under ... Read more
blank

PSE Trading Hours in 2022: What time open, when closed?

Before you take the plunge into stock trading and investing, make sure you understand what stocks are and how the Philippine Stock Exchange (PSE) operates. Unlike other investments that are relatively safe, stock trading is risky and loss of money is a possibility. So before you deep dive into the exciting world of stock trading, ... Read more

Price Floor and Price Ceiling of PSE Stocks

Trading bands in the PSE come in two forms: Price Ceiling, or the upper price limit, and Price Floor, or the lower price limit.

Leave a Comment