Nowadays, with the current financial markets being volatile. It is important for investors to have a range of assets in order to make sure their portfolio is diverse. In this blog post, we’ll be looking at five of the most expensive stocks on the market and why they might be worth investing in.
What are the most expensive stocks to invest in?
The answer to this question depends on a few factors, such as the company’s size and its profitability. In general, however, some of the most expensive stocks to invest in are those with high price-to-earnings ratios (P/E ratios).
The reason these stocks are so expensive is that they have a high share price relative to their earnings. For example, if a company has a P/E ratio of 30. That means its share price is three times as large as its net income. When investors buy these stocks, they’re essentially betting on future increases in profits.
However, there’s another reason these stocks can be expensive: They may be overvalued. In order for a stock to be overvalued, the market must believe that the company’s profits will fall in the future. When this happens, investors sell their shares, driving the share price down. And because these companies have high P/E ratios, they tend to fall harder than other stocks.
Top 5 List of the Most Expensive Stocks
There are a variety of reasons why some stocks are more expensive than others. Some may be considered to be more risky, while others may offer greater potential for returns. Regardless of the reason, these are the most expensive stocks to invest in.
- Tesla (TSLA) – Tesla is the company that has defined the electric car market and continues to redefine it. The stock is highly volatile, with prices swinging up and down by as much as 30%. However, even when the stock is lower, there is still great potential for future growth. Tesla has announced plans to produce 500,000 cars per year by 2018 and 1 million cars per year by 2020.
- Amazon (AMZN) – Amazon is one of the largest retailers on the planet, with a market value of over $1 trillion. The company has become an essential part of many people’s lives, with its Kindle e-reader and Prime subscription service. Amazon also makes money through advertising and selling digital products such as music and video downloads. Despite being one of the safest stocks to invest in, Amazon does have some volatility due to its rapid growth.
- Apple (AAPL) – Apple is a household name, and for good reason. The company has changed the way we listen to music, play games, watch movies and more. This year, Apple sold its first billion-dollar smartphone. It also has a massive cash hoard that it can use to make acquisitions or expand its business model. The company’s products are so popular that there is no shortage of demand for them. Apple’s stock price recently reached an all-time high which means you can get back in at a great price.
- Google (GOOGL) – Google is one of the most recognized companies in the world thanks to its search engine and digital advertising platform. The company makes money through selling ads on those websites as well as in its apps. As of September 2015, Google’s paid clicks on Android applications exceeded those for any other platform. It also has more than a billion monthly active users on its search engine and more than 1.5 billion mobile devices around the world. The company is still growing and its stock is one of the best I’ve ever seen.
- Walmart (WMT) – Walmart is a huge company that sells everything from groceries to electronics to clothing at low prices. It even has an online shopping portal where you can find almost anything. You are looking for at everyday low prices. In addition to being one of the largest retailers in the US. Walmart has begun expanding into international markets bringing it into competition with Amazon.
How to Invest in More Expensive Stocks
There are a number of reasons why you might want to consider investing in more expensive stocks.
First, these stocks tend to be more volatile than average, meaning that they can rise and fall a great deal in price over the course of a single day or week. This makes them a potentially exciting investment. But it also means that you may experience some losses if the stock prices suddenly take a tumble.
Second, these stocks typically offer a higher potential return on your investment than other types of assets. That said, this higher return comes with greater risk as well. So if you’re not comfortable with the idea of potentially losing money on your investments, then more expensive stocks may not be for you.
Third, because these companies are often much larger and more complex than their lower-priced counterparts, they’re also likely to have a wider array of products and services that could appeal to investors. This means that even if the stock price falls slightly overall. There’s a good chance that you’ll still be able to make some money by buying shares in one of these companies.
Conclusion
Investing in the stock market is a risky proposition, and there is always the potential for losses. However, some stocks are more riskier than others, and investors should be aware of which ones those are before investing their money. In this article, we’ve outlined the five most expensive stocks on the market right now and explained why they’re worth considering for your portfolio. Make sure you do your homework first, but if you think one of these stocks could be a good investment for your portfolio, go ahead and add it to your watch list.