Ready to dive into the world of investing with one of the most legendary companies? Excellent! Let's get you started on the path to understanding what it takes to invest in Warren Buffett's empire, Berkshire Hathaway.
How Much Do You Need to Invest in Berkshire Hathaway? A Step-by-Step Guide
Investing in Berkshire Hathaway (BRK.A, BRK.B) is a dream for many investors, a chance to own a piece of a company run by one of the greatest investors of all time, Warren Buffett. However, the price tag for a single share of its Class A stock has become legendary, making it seem out of reach for many. But don't worry, there's a more accessible option. This guide will break down exactly what you need to know and do to get started.
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| How Much Do You Need To Invest In Berkshire Hathaway |
Step 1: Understand the Two Classes of Shares
Before you even think about money, you need to understand the two different types of Berkshire Hathaway stock available. This is the most crucial step and will immediately answer the question of "how much."
Tip: Remember, the small details add value.
Class A Shares (BRK.A): This is the original stock. Its price is famously high, reaching over $700,000 per share as of June 2025. The price has never split, which is a deliberate choice by Warren Buffett to attract long-term, value-oriented investors. If you want to buy just one share of BRK.A, you'll need to have a significant amount of capital available.
Class B Shares (BRK.B): This is the "affordable" version. Created in 1996 to deter the formation of unit trusts that would mimic Berkshire's portfolio, these shares were initially priced at 1/30th of the Class A shares. After a 50-for-1 stock split in 2010, the ratio became 1/1500th of the Class A shares. As of June 2025, the price for a single BRK.B share is around $485 to $500. This is the share class that is accessible to the average retail investor.
So, to directly answer your first question: You need enough money to buy at least one share of Class B stock. As of late June 2025, that's roughly $497. However, if your brokerage offers fractional shares, you could potentially invest for as little as a few dollars, buying a small portion of a single share.
Step 2: Open and Fund a Brokerage Account
You can't just buy stock directly from Berkshire Hathaway. You need to go through a financial intermediary.
Choose a reputable brokerage: Look for a brokerage firm that offers access to US stocks on the NYSE (New York Stock Exchange), where Berkshire Hathaway trades. Many popular platforms offer commission-free trading for stocks, which is a great advantage.
Complete the account opening process: This usually involves providing personal information for KYC (Know Your Customer) verification. The process is generally quick and can be completed online within minutes to a few hours.
Fund your account: Once your account is open, you need to transfer money from your bank account to your brokerage account. This can be done via various methods, such as an ACH transfer, wire transfer, or linking your debit card.
Step 3: Research and Decide on Your Investment
QuickTip: Skim the intro, then dive deeper.
Don't just jump in! Even if you are buying a company as renowned as Berkshire Hathaway, it's essential to do your own due diligence.
Analyze Berkshire Hathaway's fundamentals: Dive into the company's annual reports and quarterly filings. Look at their revenue, earnings, cash reserves, and the performance of their various subsidiaries. As of Q1 2025, Berkshire had a record-high cash reserve of over $347 billion, a testament to their financial strength.
Consider your personal financial situation: Ask yourself: How much can I realistically afford to invest? Do not invest money that you might need in the near future. The stock market can be volatile, and it's best to have a long-term perspective.
Determine your investment amount: Decide if you want to buy a whole share or use fractional shares. If you can only afford to invest a smaller amount, fractional shares allow you to buy a portion of a share, for example, investing $100 in a share that costs $500 would get you 0.2 units.
Step 4: Place Your Order
Now for the exciting part – buying the stock!
Search for the ticker symbol: In your brokerage's trading platform, search for BRK.B (for Class B shares) or BRK.A (for Class A shares).
Choose your order type:
Market Order: This will buy the shares at the best available price at that moment. It's the simplest option but doesn't guarantee a specific price.
Limit Order: This allows you to set a maximum price you are willing to pay for the shares. The trade will only execute if the stock price reaches or falls below your specified limit.
Enter the number of shares or the dollar amount: Depending on your brokerage and whether you're buying whole or fractional shares, you'll enter the number of shares you want to buy or the total dollar amount you want to invest.
Confirm and submit: Review the details of your order, including any potential fees, and then confirm to place your trade.
Congratulations! You are now a Berkshire Hathaway shareholder.
QuickTip: Reread for hidden meaning.
Step 5: Monitor and Adjust Your Investment
Investing is not a "set it and forget it" process, although with a company like Berkshire, it's more about "set it and hold it."
Track your portfolio's performance: Keep an eye on the value of your investment.
Consider dollar-cost averaging: Instead of investing a lump sum all at once, you can invest a fixed amount of money at regular intervals (e.g., every month). This can help you reduce risk by averaging out your purchase price over time.
Stay informed: Follow the company's news, annual meetings, and Buffett's letters to shareholders.
10 Related FAQs
How to find the current price of Berkshire Hathaway Class B shares? You can easily find the live share price by searching for the ticker symbol BRK.B on financial websites, brokerage platforms, or through a simple Google search. As of June 2025, it is trading around $497.
How to buy fractional shares of Berkshire Hathaway Class B stock? Many modern brokerages, especially those catering to new investors, offer fractional shares. During the order placement process, instead of specifying the number of shares, you can choose to invest a specific dollar amount (e.g., $50), and the brokerage will automatically purchase the corresponding fraction of a share.
Tip: Read aloud to improve understanding.
How to invest in Berkshire Hathaway if I am in India? Indian investors can invest in US stocks like Berkshire Hathaway by opening an international trading account with a brokerage that facilitates US stock trading. Some Indian platforms and international brokers offer this service with KYC verification. You can also invest indirectly through Indian mutual funds or ETFs that have exposure to global stocks.
How to find out if Berkshire Hathaway pays a dividend? Berkshire Hathaway is famous for not paying a dividend. Warren Buffett has a long-standing policy of reinvesting all the company's earnings back into its businesses or using the cash for acquisitions and share buybacks, believing this creates more value for shareholders in the long run.
How to calculate the value of Berkshire Hathaway Class A shares based on Class B shares? A Class A share can be converted into 1,500 Class B shares. Therefore, the theoretical value of a Class A share is roughly 1,500 times the price of a Class B share. For example, if BRK.B is trading at $500, the theoretical value of BRK.A would be $500 * 1,500 = $750,000. However, the market price can vary slightly.
How to know if Berkshire Hathaway is a good investment for me? Berkshire Hathaway is considered a long-term, stable investment due to its diversified portfolio of businesses and its strong financial position. It may be a good fit if you have a long-term investment horizon and align with a value-investing philosophy. It's important to consider your own financial goals and risk tolerance.
How to invest in Berkshire Hathaway without buying individual shares? You can gain exposure to Berkshire Hathaway's portfolio by investing in certain ETFs or mutual funds that hold BRK.B as one of their major holdings. Some ETFs even aim to mimic Warren Buffett's investment strategies.
How to track Berkshire Hathaway's portfolio holdings? You can track Berkshire Hathaway's public stock holdings by looking at their quarterly 13F filings with the U.S. Securities and Exchange Commission (SEC). This report details their equity positions.
How to sell my Berkshire Hathaway shares? Selling your shares is as straightforward as buying them. Simply log in to your brokerage account, find your position in BRK.B, and place a "sell" order. You can choose a market order to sell at the current price or a limit order to sell at a specific price.
How to understand the difference in voting rights between Class A and Class B shares? Class A shares have significantly more voting power. A single Class A share has 10,000 times the voting rights of a single Class B share. This difference is primarily relevant for institutional investors or those who wish to have a significant say in company matters. For most retail investors, this difference is not a primary concern.
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