Story of Success: The Most Expensive Shares

Image for post
Image for post

Did you know that stock of Berkshire Hathaway — the most powerful investing company owned by Warren Buffet, who has been consistently in the list of the world’s top 3 richest men for already a decade, is considered to be the most expensive publicly traded stock — around $300'000 per share.

Berkshire Hathaway is an investment company that buys shares of other famous companies working in various spheres. Currently the corporate group owns shares and controlling stakes of almost one hundred various companies and manages assets totaling up to $600 billion.

Warren Buffet started developing the company in 1964. Firstly, he bought controlling stake from the General director of the textile manufacturing company. The shares were getting more expensive until by 1995 their price reached $22'000 per share, which pushed off even the wealthiest investors. People did not understand why buying such an expensive active if it is not supported by dividends. There were almost no shares in the free circulation, there was no demand for them, and attracting funds by selling them was not possible.

In 1995 a decision was taken to issue a new type of shares — “Type B”. Share placement happened on 9 May 1996, one share of “Type B” was equal to 1/1500 of “Type A”.

К 2006 Berkshire Hathaway’s privileged shares value has crossed the threshold of $100'000 per share, which made them the most expensive stock in the history of humankind.

All in all, the value of “Type B” shares reached $3'250, which once again pushed off investors. That’s why in 2010 a decision was made to break the shares of the second type in proportion of 1:50. Par value of the new share became 0.0033 of “Type A”.

Several hundred of Americans who had invested in 70-ies and 80-ies into Buffet’s shares became millionaires. From then on, the shares have risen by astounding 7500% in value.

And you — do you invest in stock?

Exchanger monitor

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store