World's Most Expensive Stock
84
A while back I was curious as to what an expensive share of stock really was, and it blew my mind when I found out. Berkshire Hathaway is a conglomerate holding company based in Omaha, Nebraska. They take the cake. Trading at around a hundred grand per share today, it's down from a high point around 150k in late 2007. Maybe if a few of us go in together we can buy a share. I had to share this because it blows my mind.
Berkshire Hathaway is headed by Warren Buffett and dealt largely with insurance. Early in his career he used the insurance capital to invest in long term in stocks and the like, and now the company has turned to buying entire companies, ranging from candy production to vacuum cleaners.
If the name Warren Buffett sounds familiar, it should. In 2008 Forbes ranked him as the richest man in the world, with a net worth at about $62 billion. He is the majority share holder of berkshire, with the most expensive stock in the world, so it stands to reason. He also pledged to give away 85% of his fortune to the Bill and Melinda Gates Foundation upon his death.
He already holds the record for the largest charitable donation in history, when he gave away about 10 million class B shares of Berkshire to the Gates Foundation in 2006.
Why is the stock so expensive? Two reasons I have found thus far include that the stock has never split. Corporations often split stocks to drive the price down to generate more activity. And that the company has generated no less than 20% annual returns over the last 40 years.
If you ever get a chance, watch an interview with him on Youtube or somewhere. He seems like an amazingly down-to-earth, level-headed genius. He might be my hero.
CommentsLoading...
ZOMG H4X!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
LMAO...Over 20 years ago when I worked "on the street", we couldn't believe what Berkishire was trading at at the time (it was the most expensive stock back then also)...oooo, it was 1600.00 per share back then...if only I had scraped together enough for a few shares...*sigh*...Hindsight...but I'm seriously considering selling Apple and buying the Berkshire B's...that's the closest I'll get to owning some Buffet stock!
I'm pretty sure the reason these stocks are so expensive is for Board of Directors votes, I could be wrong on this though. Class A stocks give you about a hundred votes when the times come, and you get a hundred for each Class A stock you own. Class B stocks give one vote, but they're fairly normal stocks, not super expensive like Class A, as of now about 80 dollars. I'd imagine the people who would buy Class A buy quite a few to keep an influential vote in the company's politics with no intention of selling unless the company goes out of business.
Again, could be wrong, but I'm pretty sure that's the case with this ultra-expensive stock.
thats nothing compared to japan tobacco inc at 400,000
nifty tips 7 months ago
Markets dramatically change they their flow and no one exactly produce or expect 100% from their profits . Choosing the right indicator or analyzing software blended with human aspect gives better results.
regards:
nifty tips