A Comprehensive Guide on How Much to Buy Into Berkshire Hathaway
Are you ready to join the ranks of investors who own a piece of a company led by the legendary Warren Buffett? Investing in Berkshire Hathaway isn't just about buying a stock; it's about buying into a diversified conglomerate of businesses and a portfolio of publicly traded companies, all managed with a long-term, value-oriented philosophy. But the question remains: how much should you buy?
This is a question every potential investor needs to ask. There's no one-size-fits-all answer, as your investment amount depends on your financial situation, risk tolerance, and investment goals. This guide will walk you through the steps to help you decide how much of Berkshire Hathaway is right for you.
Step 1: First, let's get real about your finances. Are you ready to invest?
Before we even talk about ticker symbols and share classes, let's talk about you. Investing is not a get-rich-quick scheme. It's a long-term commitment. Ask yourself:
Do you have an emergency fund? Before investing in the stock market, you should have at least 3-6 months' worth of living expenses saved in a liquid, easily accessible account.
Are you free of high-interest debt? Paying off credit card debt or personal loans with high interest rates is often a better "investment" than any stock.
What are your financial goals? Are you saving for retirement, a down payment on a house, or something else? Your goals will influence your investment timeline and risk tolerance.
If you can confidently say "yes" to having an emergency fund and "yes" to managing your debt, then let's move on. If not, don't worry! This guide will still be here when you're ready.
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| How Much To Buy Into Berkshire Hathaway |
Step 2: Understand the Two Classes of Berkshire Hathaway Stock
Berkshire Hathaway (BRK) has two classes of common stock, and the difference is huge. You need to understand them before you even think about placing an order.
Sub-heading: Class A Shares (BRK.A)
These are the original shares. They have never split, which is a key reason for their incredibly high price.
Price: As of late June 2025, a single Class A share trades for around $730,000 to $740,000.
Voting Rights: Each Class A share has full voting rights. This gives the holder a say in corporate decisions.
Accessibility: Due to the price, these shares are largely inaccessible to the average retail investor.
QuickTip: Return to sections that felt unclear.
Sub-heading: Class B Shares (BRK.B)
These shares were created by Warren Buffett himself to make the company's ownership accessible to a wider range of investors.
Price: As of late June 2025, a single Class B share trades for around $485 to $490. This makes them far more affordable.
Voting Rights: Each Class B share has 1/10,000th of the voting rights of a Class A share. While you still have a vote, your influence is minimal.
Convertibility: You can convert a Class A share into 1,500 Class B shares, but you cannot convert Class B shares back to Class A.
Key takeaway: For most individual investors, the BRK.B shares are the only realistic option. They represent the same underlying ownership of the company's assets and a similar return on investment as the Class A shares. The primary difference is the price and voting power.
Step 3: Determine Your Investment Amount
Now for the main event. How much of your portfolio should be dedicated to Berkshire Hathaway?
Sub-heading: Consider Your Overall Portfolio Allocation
A well-diversified portfolio is your best friend in investing. Before you buy any single stock, you should think about your overall asset allocation. A common guideline is to have a mix of stocks, bonds, and other assets based on your age and risk tolerance.
Rule of thumb: A general rule of thumb is to not allocate more than 5-10% of your total equity portfolio to any single stock, no matter how great the company is. Even a company as solid as Berkshire Hathaway has risks, and you don't want your entire financial future riding on one horse.
Your risk tolerance: Are you a conservative, moderate, or aggressive investor?
Conservative investors might want to stick to a smaller percentage, perhaps 1-3%.
Moderate investors could consider 5-7%.
Aggressive investors might go as high as 10%, but should be prepared for potential volatility.
Sub-heading: Calculate the Number of Shares You Can Afford
Let's say you've decided to allocate a certain amount of money to individual stocks. Now, how many BRK.B shares can you buy with that money?
Example 1: The Small Investor You have ₹5,000 (approximately $60 USD) to invest. With fractional shares, you can buy a portion of a BRK.B share. If the price is $485, you can buy 0.12 shares.
Example 2: The Moderate Investor You have ₹50,000 (approximately $600 USD) to invest. This is enough to buy one full BRK.B share at $485 and have some cash left over. You could buy one share and consider buying more later.
Example 3: The Serious Investor You have ₹4,000,000 (approximately $48,000 USD) to invest. You could buy around 99 BRK.B shares.
Remember: The price of the stock fluctuates daily. Use the current market price when you are ready to buy.
Tip: Pause, then continue with fresh focus.
Step 4: Open a Brokerage Account and Place Your Order
To buy Berkshire Hathaway stock, you will need a brokerage account. You cannot buy the stock directly from the company.
Sub-heading: Choose a Brokerage
Look for a brokerage that offers commission-free trading and allows you to invest in US stocks. Many Indian and international brokerages now offer this service.
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Important things to consider:
Trading fees: Look for zero-commission trades.
Minimum investment: Some brokerages have minimum deposit requirements.
Fractional shares: If you can't afford a full share, look for a brokerage that offers fractional share investing. This allows you to buy a portion of a share based on a dollar amount.
Sub-heading: Place the Order
Once your account is funded, search for the ticker symbol BRK.B. You'll need to decide on your order type:
Market Order: You buy the stock at the best available price at that moment. This is simple and fast, but the price might fluctuate slightly from when you click "buy."
Limit Order: You set a specific price you are willing to pay for the stock. The trade will only go through if the stock reaches that price. This gives you more control over the price you pay.
For a long-term investment like Berkshire Hathaway, a market order is often sufficient as small price fluctuations won't matter over decades.
Step 5: Practice Patience and Discipline
Warren Buffett's success is not just from picking good companies; it's from his patience and long-term holding strategy. Once you've bought your shares, the most important step is to do nothing.
Don't panic sell: The stock market goes up and down. Do not sell your shares during a market downturn. If you believe in the company's long-term prospects, a dip can be a buying opportunity.
Reinvest your earnings: Berkshire Hathaway does not pay a dividend. Buffett believes in reinvesting all of the company's earnings back into the business, which has been a key driver of its growth.
Stay informed, not obsessed: Follow Berkshire Hathaway's annual reports and letters to shareholders. They are a treasure trove of wisdom. However, avoid checking the stock price every day.
By following these steps, you can make an informed decision on how much to buy into Berkshire Hathaway and set yourself up for a long-term investment journey aligned with the principles of value investing.
Tip: Skim once, study twice.
10 Related FAQ Questions
How to buy Berkshire Hathaway Class B shares?
To buy BRK.B shares, you need to open a brokerage account that allows you to trade US stocks, fund the account, and then search for the ticker symbol 'BRK.B' to place your buy order.
How to buy fractional shares of Berkshire Hathaway?
Many modern brokerages now offer fractional share investing. You can invest a specific dollar amount (e.g., $100) instead of buying a full share, and the brokerage will purchase a fraction of the share for you.
How to invest in Berkshire Hathaway from India?
Indian investors can buy Berkshire Hathaway shares by opening an international trading account with a brokerage firm that offers access to US stock markets. You will need to complete KYC verification and fund your account in USD.
How to determine if Berkshire Hathaway stock is overvalued?
You can analyze financial metrics like the Price-to-Book (P/B) ratio, Price-to-Earnings (P/E) ratio, and compare them to the company's historical averages and its peers. A high P/B or P/E ratio might indicate it's overvalued, but you must also consider the company's quality and growth prospects.
Tip: Don’t overthink — just keep reading.
How to understand the difference between BRK.A and BRK.B?
BRK.A is the original Class A share with a very high price and full voting rights. BRK.B is the Class B share, created to be affordable, and has significantly less voting power (1/10,000th of a Class A share). They represent the same ownership interest.
How to find Berkshire Hathaway's financial reports?
You can find Berkshire Hathaway's annual reports, quarterly reports, and famous letters to shareholders on the company's official investor relations website. These are essential resources for understanding the company's performance.
How to know if Berkshire Hathaway is a good investment for me?
It's a good investment if you have a long-term horizon (at least 5-10 years), believe in the value investing philosophy, and want a diversified holding of high-quality businesses without having to pick individual stocks yourself. It's not suitable for short-term speculation.
How to diversify my portfolio after buying Berkshire Hathaway?
After buying BRK.B, you can diversify by investing in a variety of other assets like index funds (e.g., S&P 500 ETF), bonds, and international stocks. This prevents your portfolio from being over-exposed to any single company or market.
How to find the current price of Berkshire Hathaway shares?
You can find the live stock price of BRK.A and BRK.B on financial news websites like Bloomberg, Reuters, or Yahoo Finance, as well as on your brokerage platform.
How to deal with the risk of Warren Buffett's succession?
While the succession is a key risk, Buffett has a clear plan in place. He has designated managers, including Ted Weschler and Todd Combs, to handle the investment portfolio, and the company's culture is deeply ingrained with his principles. The risk is mitigated by the company's solid business fundamentals and diversified holdings.
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