Highest Priced Stocks: Are they Highfliers?

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 prices 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 July 15 at 2,840.

Every investor has heard of the top one on the list, Berkshire Hathaway Inc. (BRKA), 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 invests primarily in insurance companies, but also numerous types of other companies including including candy; furniture, encyclopedias, vacuum cleaners, jewelry, and newspapers. They also take 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 (BRKB) which closed at 3,612, and has an ownership value of 1/30th of the A shares. Both A and B shares trade on 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. The P/E is 14 and the P/S is 3.2. The stock has a yield of 1.5%.

Farmers & Merchants Bank of Long Beach (FMBL.OB) sells at a pretty rich price of 6,800 per share. They are based in Long Beach, California, Their P/E is 18, their P/S is 7, and they pay a yield of 1.2%.

Next on the list is Sunwest Bank (SWBC.OB), yet another California bank, this one 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 the 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. They are in the business of food processing and ocean transportation, and their stock sells for 2,488.25. Their P/E is 12.2 and their P/S is 1.1. They pay a very small yield of .1%, and have been paying dividends for 15 years.

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

Author does not own any of the above.