Top 10 Most Expensive Stocks in the World

What exactly is meant by the most expensive stock on earth or highest share price in world? It is not about the market cap. We all know that Apple is the most valuable company by market cap. But few may be aware that to buy one stock of Warren Buffett’s Berkshire Hathaway actually costs the buyer nearly Rs4 crore. 

You can literally sell one share of Berkshire Hathaway and buy a mid-to high end apartment in Mumbai. But there are many more such cases, although no listed stock is as pricey as Warren Buffett. Here we look at the most expensively priced stocks or the highest share price in world and in India.

We shall also see why these highest share price in world stocks are so expensive and it could possibly be because the promoters wanted a very narrow market for their stock and hence never decided to reduce the stock price through splits and bonus issues.

Overview of Top 10 Most Expensive Stocks in the World

Let us look at the five most expensive stocks in the world. Here we are talking about the price of the stock and not the market cap or the market value. Of course, globally, Apple, Saudi Aramco and Amazon would be among the most valuable companies, but this is about the price of the stock. Here are some of the highest share prices in world by price.

1.Berkshire Hathaway:

Berkshire Hathaway, the investment company run by Warren Buffett has a stock price of $467,660/ share. That translates into a per share rupee value of Rs3.86 crore per share.

2. Lindt & Sprungli:

Lindt & Sprungli,, the Switzerland based confectionary company has a stock price of SFR108,400/ share. That translates into a per share rupee value of Rs98.26 lakhs per share.

3. Next PLC:

Next PLC, the UK based retailer of a variety of products has a stock price of £6,462/ share. That translates into a per share rupee value of Rs.6.53 lakhs per share.

4. NVR Inc:

NVR Inc, the US based real estate development company, has a stock price of $5,527/ share. That translates into a per share rupee value of Rs4.57 lakhs per share.

5. Seaboard Corporation:

Seaboard Corporation, the US based pork and food products company, has a stock price of $3,799/ share. That translates into a per share rupee value of Rs3.14 lakhs per share.

6. Bookings Holdings:

Bookings Holdings, the US based travel price agency, has a stock price of $2.639/ share. That translates into a per share rupee value of Rs2.18 crore per share.

7. Markets Corporations:

Finally, Markets Corporation, one of the leading mutual insurance companies in the US quotes at a price of $1,296, which translates into rupee value of Rs1.07 lakhs per share.

Let us also look at the top 10 most expensive stocks in India to get a domestic perspective.

The above list is based on the highest share price in world and not the market cap. For instance, by market cap it is still Reliance and TCS that dominate the market. But this is purely on the stock price. For instance, Eicher would have made it to this list, but due to the stock split, the price has come down sharply and does not feature in the list. Let us look at most expensive share in world and most expensive share in the world.

What makes a stock expensive?

It is hard to say what makes a stock expensive but it is normally a combination of factors. For instance, in the case of Berkshire Hathaway, the company never paid out dividends but kept reinvesting the funds back into the company. That has consistently reflected in the stock price going to such astronomical levels. Then there are companies like Lindt that are positioned as very high end and premium products. 

For them, an expensive stock is almost an extension of their brand positioning. If you look at India, MRF trades at more than Rs84,000 per share and most investors would be wary of buying the stock. In most cases, the reason is that the company never went for stock splits or bonus issues. That is the way most companies expand the capital and reduce the share price so that it comes within a more popular trading range. That is the highest share price in world.

Analysing the companies behind the most expensive stocks

The companies that we saw in the list of most expensive stocks are typically the stock with a small capital base, closely held companies and which are into high growth niche areas. That is very evident in India where many of these are branded FMCG products. Globally, there is no such industry classification that is visible for the most expensive share in world or the most expensive share in the world.

What is the future of the most expensive stocks?

Expensive stocks, whether in India or abroad, would normally be outside the reach of most retail investors. People often argue that price does not matter but then there is the psychological resistance to buying a stock that is trading at more than Rs50,000. The general feeling, albeit erroneous, is that when the price of a stock goes high, it would logically fall. Eventually the earnings and the growth will drive the stock, but retail investors would largely be outside the ambit of the most expensive share in world or the most expensive share in the world.

Risks and benefits of investing in the world's most expensive stocks

There are no special benefits of investing in most expensive share in world or the most expensive share in the world. However, the risk is that any volatility in the price may cause an inordinate loss to the investor. That can be rather touchy subject at a psychological level.

Conclusion

Many of the high priced stocks have been around for a long time and have also proven track records. However, from the perspective of retail investors, there is resistance for such stocks. That makes them very thinly traded. That is the story of the most expensive stock in the world and the costliest share in world.