I have a question about why people buy a particular stock. I know that the rise and fall of a stock price is due to supply and demand but the question is why people buy that particular stock, becuase they FEEL it will rise? because they GUESS it will rise or because they THINK it will rise?
If the answer is because they know that the company is making money and they will get devidend if they invest on the company then I do not know how to explain why people want to buy berkshire hathaway stock which is the most expensive stock in the world.
The companny is own by warren buffett and I have read in the internet about the devidend that the company give out. It says that warren buffett don't give out devidend because he believe to invest every single dollar of the investor.
At first I was thinking that the world richest man and the world most expensive stock do not have a link because it doesn't mean that he is rich then his stock must be the most expensive one but later on I feel that maybe I look at it in an opposite way.
I think that the correct way to put it is because his stock is the most expensive so he is very rich.
So now the only doubt I have is why people buy his stock in another words why his stock grew so quickly?

i think it's a combination.....different people have different reasons why they buy a stock (and sometimes, there's really no reason behind their purchase at all)

berkshire hathaway stock is bought because of the capital appreciation. it just grows in value, because the business is profitable and is continually increasingly profitable