There are a select few businesses on the ASX where each share is trading at over $100 per share.
Four of the most well-known include:
Macquarie Group Ltd (ASX: MQG) shares are trading at almost $115.
Blackmores Limited (ASX: BKL) shares are trading at just over $117.
CSL Limited (ASX: CSL) shares are now just over $188.
Cochlear Limited (ASX: COH) shares are now valued at nearly $187.
Does it matter how much each share is trading at? Not really, but it can make it hard to accumulate shares if they're trading at such a high price and you only have $500 to invest.
A share price may signal that the business has grown significantly since its initial listing price of, for example, $2. However, it doesn't say anything for how expensive it is right now.
Telstra Corporation Ltd (ASX: TLS) shares are trading at around $3, yet the telco is many times larger than Blackmores.
The share price is simply a function of the total value of the business divided by the number of shares. The less shares there are the higher each share will be priced, even if the price/earnings ratios and total market capitalisations are the same whether there are 1 million shares or 1 billion shares.
In the US there are examples of much higher prices. Alphabet (Google) Class A shares are trading at over US$1,100 per share and Berkshire Hathaway Class A shares are now at US$308,000 each. Which share is better value: Berkshire Hathaway, Alphabet or CSL? The share price certainly won't tell you.
You have to have over US$300,000 to buy just one Berkshire Hathaway Class A share, so it does limit who can buy those shares.
Foolish takeaway
Of the four ASX shares I mentioned in this article that are trading above $100 I'd most likely go for CSL. Its main product is still growing at a good rate each year and it has a R&D pipeline of several other products which could easily spur the next stage of growth. However, rising interest rates could hurt it in the short-to-medium-term.
