How to Invest in Berkshire Hathaway: A Comprehensive Step-by-Step Guide
Hello, aspiring investor! Have you ever wanted to own a piece of a company run by one of the greatest investors of all time, the legendary Warren Buffett? If you're looking to add a powerhouse of a company to your portfolio, then investing in Berkshire Hathaway might be just what you're looking for. It's not just a stock; it's a diverse conglomerate with holdings in everything from insurance and railroads to consumer goods and utilities. Let's embark on this journey together and explore how you can invest in this iconic company.
Step 1: Understand the Two Classes of Berkshire Hathaway Stock - A vs. B
Before you even think about buying a single share, you need to understand a crucial distinction: Berkshire Hathaway has two different classes of stock. This is a unique feature that Warren Buffett implemented to ensure his company remains accessible to a wider range of investors.
Berkshire Hathaway Class A (BRK.A): This is the original, and famously expensive, class of stock. As of June 2025, a single share of BRK.A trades for an eye-watering price of over $700,000. These shares have 10,000 times the voting rights of Class B shares and are not subject to a stock split. Buffett believes the high price attracts long-term investors who are not focused on short-term price fluctuations. If you have the capital and want maximum voting power, this is the class for you.
Berkshire Hathaway Class B (BRK.B): This class was created in 1996 to be more affordable and accessible to the average retail investor. A single share of BRK.B is a tiny fraction of the price of a Class A share, making it much more attainable. Currently, the price per share is around $485. While these shares have significantly less voting power, they represent the same underlying ownership in the company and track its performance in a similar way. For most investors, this is the practical and recommended option. A Class A share can be converted into 1,500 Class B shares, but not the other way around.
So, which one is right for you? For the vast majority of individual investors, the Class B shares are the way to go. They offer the same economic exposure to Berkshire Hathaway's business empire at a fraction of the cost.
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| How Do You Invest In Berkshire Hathaway |
Step 2: Open and Fund a Brokerage Account
You can't buy stocks directly from Berkshire Hathaway. The process requires a brokerage account, which is an investment account where you can purchase and sell various financial instruments, including stocks.
Choose a reputable brokerage: There are many online brokerage platforms available, both in India and internationally. Look for a broker that offers low fees, a user-friendly platform, and access to US markets. Some popular options include platforms like Zerodha, Groww, Angel One, and international brokers like Interactive Brokers, eToro, or Stash. Make sure the platform you choose allows you to invest in US stocks.
Complete the account opening process: This typically involves providing your personal details, proof of identification (like Aadhaar, PAN card, or passport), and proof of address. The process is similar to opening a bank account and can often be completed online in a few minutes to a few hours.
Fund your account: Once your account is active, you'll need to transfer money into it. This can be done via various methods, such as a bank transfer (NEFT/RTGS), UPI, or a direct transfer from your linked bank account. Make sure you understand any currency conversion fees or charges that may apply when converting INR to USD for international investments.
Step 3: Research and Decide How Much to Invest
QuickTip: Scan the start and end of paragraphs.
Before you hit the "buy" button, it's crucial to do your due diligence. While Berkshire Hathaway is a well-established company, every investment carries risk.
Research the company's fundamentals: Look into Berkshire Hathaway's financial reports, including its revenue, net income, and earnings. You can find this information on the company's investor relations website. Remember, Berkshire Hathaway is a conglomerate, so you're not just investing in one business, but a whole portfolio of diverse companies.
Decide on your investment amount: The price of a single BRK.B share is currently around $485. If you have that much to invest, you can buy a whole share. However, many brokers now offer a fantastic option called fractional shares.
What are fractional shares? Fractional shares allow you to buy a portion of a share rather than the whole thing. For example, if a share costs $500 and you only have $100 to invest, you can buy 0.2 of a share. This is a game-changer for people who want to own a piece of expensive stocks like Berkshire Hathaway without a huge upfront investment. Check if your chosen brokerage offers fractional shares for BRK.B.
Step 4: Place Your Order
Now for the exciting part!
Log in to your brokerage account: Navigate to the trading platform and use the search bar.
Search for the stock ticker: The ticker for Berkshire Hathaway Class B is BRK.B. For Class A, it's BRK.A. Make sure you search for the correct one.
Choose your order type:
Market Order: This buys the shares at the current market price. It's a quick way to execute your trade, but the price might fluctuate slightly between the time you place the order and when it is executed.
Limit Order: This allows you to set a specific price at which you are willing to buy the stock. The order will only be executed if the stock price reaches your specified limit or below. This gives you more control over the price you pay.
Enter the amount: If you're buying whole shares, enter the number of shares you want to buy. If you're buying fractional shares, enter the dollar amount you want to invest.
Review and submit: Double-check all the details of your order before you submit it. Once you submit the order, the shares will be added to your portfolio. Congratulations, you are now a Berkshire Hathaway shareholder!
Step 5: Consider a Fund Over an Individual Stock
If you're not comfortable investing in a single company, even one as diverse as Berkshire Hathaway, you can consider investing in a fund that holds Berkshire Hathaway stock.
Index Funds and ETFs: Many index funds, especially those that track the S&P 500, will have a holding in Berkshire Hathaway. By investing in such a fund, you gain exposure to Berkshire Hathaway along with 499 other large US companies. This offers diversification, which can help mitigate risk.
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Step 6: Hold for the Long Term
Warren Buffett's investment philosophy is all about long-term value. He is famous for the saying, "Our favorite holding period is forever." Berkshire Hathaway does not pay dividends, so its value is derived from the growth of its underlying businesses. The strategy is to buy and hold, allowing the power of compounding to work its magic over many years.
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10 Related FAQs: Quick Answers
How to buy Berkshire Hathaway Class B shares from India?
You can buy BRK.B shares from India by opening an international trading account with a brokerage platform that provides access to US stocks, such as Angel One or INDmoney.
How to buy fractional shares of Berkshire Hathaway?
Many brokerage platforms like INDmoney and Stash offer fractional shares, allowing you to invest a specific dollar amount (e.g., $100) and own a fraction of a BRK.B share, rather than buying the whole share.
How to convert Berkshire Hathaway Class A to Class B?
QuickTip: Read line by line if it’s complex.
Class A shares can be converted into 1,500 Class B shares at any time. You would need to contact your brokerage to initiate this conversion.
How to find the current price of Berkshire Hathaway stock?
You can find the real-time stock price for both BRK.A and BRK.B on financial news websites, stock market apps, or directly on your brokerage platform by searching for the ticker symbol.
How to invest in Berkshire Hathaway without a brokerage account?
It is not possible to invest in Berkshire Hathaway's stock without a brokerage account. You need a platform to buy and sell stocks on the market.
How to know the minimum investment for Berkshire Hathaway?
If you want to buy a whole share, the minimum investment is the current share price of BRK.B (around $485). However, with fractional shares, you can start investing with as little as $1 on many platforms.
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How to research Berkshire Hathaway's financial reports?
The company's official investor relations website is the best place to find its annual and quarterly reports. This provides detailed information on its financial performance and holdings.
How to get dividends from Berkshire Hathaway?
Berkshire Hathaway has a long-standing policy of not paying dividends. The company prefers to reinvest its profits back into its businesses to fuel future growth.
How to invest in Berkshire Hathaway through an ETF or Index Fund?
You can invest in an S&P 500 index fund or a similar ETF, which will include Berkshire Hathaway as one of its top holdings, giving you diversified exposure to the company.
How to know if Berkshire Hathaway is a good investment for me?
This depends on your personal financial goals and risk tolerance. It's essential to do your own research, understand the risks, and consider if a long-term, buy-and-hold strategy aligns with your investment philosophy before investing.
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