Once upon a time, the belief was that stocks priced in the $10-$40/share range had the best combination of consumer confidence and liquidity. Below $5/share and people wondered what was wrong with the company. Above $70-80/share and it was hard to buy in even blocks. The too low argument is still somewhat valid since some funds refuse to buy stocks that trade below $5/share. The high end limit is less so since there is no longer a penalty for buying uneven blocks of stock. Obviously Warren Buffet has never worried about high priced shares.