Seven Stocks That Trade Above One Thousand Dollars Per Share

Do you really think that the Google (GOOG) shares of stock at $515 or the shares of stock of the Chicago Mercantile Exchange (CME) at $550 are really that high-priced? There are actually several stocks that trade above a thousand dollars per share.

However, if you are considering including some of the high-priced shares in your portfolio, you will probably want those that trade on a regular basis, excluding such stocks as Indians Inc. (INDN.PK), which last traded at $21,500 on March 15, or Winter Sports [New] (WSPS.PK) which last traded on July 14 at $2,840.

Here is a list of some of the highest-priced stocks:

Every investor has heard of the top one on the list, Berkshire Hathaway Inc. (BRK.A), which closed at $109,340. This is the holding company run by Warren Buffett, that has done the famous ‘25/25’, providing an average annual return in excess of 25% over 25 years.

Berkshire primarily invests in insurance companies, but also has numerous types of other companies including candy, furniture, encyclopedias, vacuum cleaners, jewelry, and newspapers. It also takes major positions in other stocks. The stock has a P/E of 15, and a Price Sales Ratio of 1.56. Earnings for the latest quarter were up over 12%, on quarterly revenue growth of 44%, year over year.

If this share price is too rich for your blood, you can always invest in the Berkshire Hathaway Holdings B Shares (BRK.B) which closed at $3,612, and has an ownership value of 1/30th of the A shares. Both A and B shares trade on the NASDAQ.

Mechanics Bank (MCHB.OB) is the second highest on the list with its latest share price being $19,450. This Richmond, California-based bank was founded in 1905. It has a P/E of 14 and a P/S of 3.2. The stock has a yield of 1.5%.

Farmers & Merchants Bank of Long Beach (FMBL.OB) has a pretty rich price of $6,800 per share. It is based in Long Beach, California. It has a P/E of 18, and a P/S of 7. It pays a yield of 1.2%.

Next on the list is Sunwest Bank (SWBC.OB), yet another California bank, and is based in Tustin, in Orange County. The stock recently closed at $2,925 and has a P/E of 24.7, and a P/S of 2.8. Does anyone know why all of the really high-priced bank share companies are located in California?

Seaboard Corp. (SEB) is only one in the group that’s not an insurance, or bank company. It is in the business of food processing and ocean transportation, and its stock sells for $2,488.25. Its P/E is 12.2, and has a P/S of 1.1. It pays a very small yield of .1%, and has been paying dividends for 15 years.

First National Bank Alaska (FBAK.OB) is another west coast bank, this one is based a little farther north, in Anchorage, Alaska. The stock just closed at $2,222. It has a P/E of 18, a P/S of 5.1, and pays a yield of 4.6%.

Disclosure: The author does not own any of the above.

Comments

[Amy Chiang]

Why are all of the really high-priced bank share companies located in California?
And why are most of these either an insurance or bank company?

[tchannon]

It's the understanding of units of ownership. If you owned your own company in full, why would you want to break up your ownership into little pieces? These companies have management that act like owners, and in many cases, are still run by the family that founded the company 100 years+ ago.

So, say you start your own company providing a service and that is your livelihood. You rely on the money the company makes, not the price per share of your stock. Sure, perhaps the opportunity comes along to sell a piece of it or raise capital and issue new shares, but the reality is, as long as you are an owner, just keep it for yourself. Furthermore, even if I am ok with someone becoming a new owner, I want them to pay the full price and not be able to have a few crumbs. The exclusivity of ownership.

Stock price is important, yes, but I bet that if you talk to any of the management at any of the above companies, I bet the price per share on the stock market is probably the last thing on their mind. Additionally, Very conservative financial theory (commonly practiced by family owned companies, small regional banks with huge operating history) and historical data suggest that having a stock split is not really good or bad - so, since it is not bad, and not good, why do it?