The most expensive stock for a single share is Berkshire Hathaway Class A (BRK.A).
Understanding Berkshire Hathaway's Unique Position
Berkshire Hathaway, a diversified holding company, holds the distinction of having the highest share price in the world for its Class A stock. This remarkable valuation is a testament to its long-term growth and unique corporate philosophy.
The Legacy of Berkshire Hathaway
Originally a textile manufacturing company, Berkshire Hathaway was acquired in 1956. Under its current leadership, it transformed into a massive conglomerate with diverse investments across various sectors, ranging from insurance and energy to consumer goods and railroads.
Why is BRK.A So Expensive?
A single Class A share of Berkshire Hathaway is currently priced at approximately $686,000. This extraordinary price point is largely due to a deliberate strategy:
- No Stock Splits: Unlike most companies that split their shares to make them more accessible and reduce per-share price, Berkshire Hathaway has famously never split its Class A shares. This allows the share price to grow alongside the company's intrinsic value over decades.
- Attracting Long-Term Investors: This high price point naturally deters short-term speculators and attracts investors who are committed to a long-term investment horizon, aligning with the company's investment philosophy.
Exploring Berkshire Hathaway's Share Classes
To provide accessibility to a broader range of investors, Berkshire Hathaway offers two distinct classes of shares: Class A and Class B.
Class A Shares (BRK.A)
- Price: As mentioned, these are the most expensive, currently around $686,000 per share.
- Voting Rights: Each Class A share carries significant voting power, providing substantial influence in company decisions.
- Convertibility: Class A shares can be converted into Class B shares at any time.
Class B Shares (BRK.B)
- Affordable Alternative: Created in 1996 (and later split further in 2010), Class B shares offer a significantly lower price point, making them accessible to individual retail investors and mutual funds. For example, a single BRK.B share typically trades for around $450.
- Limited Voting Rights: Class B shares have fewer voting rights compared to Class A shares, often just 1/10,000th of a Class A share's voting power.
- Non-Convertible: Class B shares cannot be converted back into Class A shares.
Comparative Overview
The table below highlights the key differences between the two share classes:
| Feature | Berkshire Hathaway Class A (BRK.A) | Berkshire Hathaway Class B (BRK.B) |
|---|---|---|
| Approx. Price | ~$686,000 (as per reference information) | Significantly lower (e.g., typically ~$450) |
| Voting Rights | High | Limited (e.g., 1/10,000th of Class A) |
| Convertibility | Convertible to BRK.B | Not convertible to BRK.A |
| Investor Appeal | Institutional investors, large capital holders | Retail investors, ETFs, mutual funds for exposure |
| Historical Splits | None | Split multiple times to maintain accessibility |
For more information on Berkshire Hathaway's operations and history, you can visit their Wikipedia page.
