Getting a piece of Berkshire Hathaway, Google or Apple will set you back a pretty penny, but could make you some even prettier dollars. USA Today markets reporter Matt Krantz says high per-share share price stocks have allure for investors, pointing out recently that:
“The average gain of the five stocks in the Standard & Poor’s 500 index with stock prices of $500 or more was 18.7%. Stocks priced above $200 a share posted average gains of 14.3% while stocks priced at $100 or more rose 17.4%. These stocks with high per-share prices all topped the 9.7% average gain of stocks in the S&P 500.”
Krantz says investors a high per-share price doesn’t mean a stock is actually expensive:
“To find out how pricey or cheap a stock is, the per-share price must be compared with another company metric, such as earnings or book value. Some of the stocks with high per-share prices sport relatively high valuations, while others do not.”
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