Most of us know that, at a price of nearly Rs 1.5 lakh per share, MRF is the most expensive stock in India. But what about the world¡¯s most expensive stock? Is it Tim Cook¡¯s Apple, Satya Nadella¡¯s Microsoft, or Elon Musk¡¯s Tesla? Well, its none of these. In fact, its 93-year-old billionaire Warren Buffett¡¯s company Berkshire Hathaway which has the world¡¯s most expensive stock.
Billionaire?Warren Buffett-led Berkshire Hathaway has the world's most expensive stock price, with each share costing Rs 5.1 crore a piece ($615,356). This is the stock price of Berkshire Hathaway's Class A shares listed on NASDAQ.
For the unversed,?Berkshire Hathaway is an American multinational conglomerate holding company headquartered in Omaha, United States. Founded in 1839 as a textile manufacturer, Berkshire underwent a drastic restructuring into a conglomerate starting in 1965 under the leadership of Warren Buffett and Charlie Munger. The conglomerate's main business and source of capital is insurance, from which it invests the float (the retained premiums) in a broad portfolio of subsidiaries, equity positions, other securities, etc.
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Given the insanely high price of Berkshire Hathaway's stock,?investors have frequently questioned Buffett about a possible stock split, which occurs when a company divides up its shares to lower their price and increase the overall amount of shares available, because Berkshire Hathaway's class A shares have since long been the most expensive single stock.
But in response,?Buffett has stated, according to a CNBC report, that the company's stellar history of increasing its value is due to this rejection of stock split, rather than in spite of it.?
¡°We want to attract shareholders who are as investment-oriented as we can possibly obtain, with as long-term horizons,¡± he said. If Berkshire were to split the stock and lower its price, ¡°we would get a shareholder base that would not have the level of sophistication and the synchronization of objectives with us that we have now.¡±
Warren Buffett had added that he saw no incentive in having a cheaper stock that has more volatility if it isn¡¯t creating ¡°intrinsic value¡± for investors. ¡°There are a lot of people that are attracted to stocks that are going upward. It doesn¡¯t attract us,¡± he said. ¡°We don¡¯t care to have it sell higher, except as intrinsic value grows.¡±
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Its a no-brainer that 93-year-old billionaire Warren Buffett is considered one of the most successful and admired investor in the world. Despite having a mammoth net worth of $134 billion (as per Forbes real time list), and being among the world's ten richest people currently, Buffett has lived a rather simple lifestyle. He has been staying in the same house he bought in the year 1958,??and has been drawing the same?$100,000 salary as the Chairman and CEO of Berkshire Hathaway since four decades.
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