Welcome, aspiring investor! Are you curious about the legendary company run by the Oracle of Omaha, Warren Buffett, and its stock? You've come to the right place. Let's delve into the fascinating history of Berkshire Hathaway's stock, particularly focusing on the question that often puzzles investors: how many times did Berkshire Hathaway split?
Step 1: Get to Know the Two Classes of Berkshire Hathaway Stock
Before we dive into the split history, it's absolutely crucial to understand that Berkshire Hathaway has two distinct classes of stock, each with its own ticker symbol and history:
Class A shares (BRK.A): These are the original, and famously expensive, shares. They are the ones Warren Buffett has steadfastly refused to split. A single share of BRK.A can cost hundreds of thousands of dollars, making it the highest-priced stock of any public company in the world. As of late June 2025, the price of a single BRK.A share has been hovering around the $730,000 mark! The high price is by design, as Buffett believes it attracts long-term, like-minded investors and discourages short-term speculation.
Class B shares (BRK.B): Introduced in 1996, these are often referred to as the "Baby Bs." They were created to make the company's stock more accessible to a wider range of investors. While they represent a smaller fraction of ownership and have fewer voting rights, they provide a way for individual investors to participate in Berkshire's growth without the massive capital required for a Class A share.
Understanding this distinction is the first and most important step in comprehending the stock split history. If you're ready to learn about how these two classes have been treated differently, let's move on.
Step 2: Unraveling the Stock Split History
This is where we get to the core of the matter. The answer to "how many times did Berkshire Hathaway split?" is not as simple as a single number. You have to consider each class of stock separately.
Sub-heading: The Story of Class A Shares (BRK.A)
A History of No Splits: The answer is simple and definitive: Berkshire Hathaway's Class A shares have never split. Not once. In the over 60 years that Warren Buffett has been at the helm of the company, he has maintained a firm stance against splitting the Class A stock.
The Rationale: Buffett's philosophy is rooted in attracting a specific type of shareholder. He wants investors who are focused on long-term value and who will hold the stock for decades, not days. The high price tag acts as a filter, naturally deterring day traders and those interested in short-term price fluctuations. He has consistently argued that splitting the stock would attract the wrong kind of investor and create a more volatile shareholder base. This commitment to a long-term, buy-and-hold philosophy is a cornerstone of his investment success.
Sub-heading: The Story of Class B Shares (BRK.B)
Now, the story for the Class B shares is completely different.
One Split in History: The Class B shares have split once. This occurred on January 21, 2010.
The Split Ratio: It was a 50-for-1 stock split. This means that for every one share of Class B stock an investor owned, they received 50 new shares.
The Reason for the Split: This split was not done to make the stock more accessible in the traditional sense, but rather to facilitate a major acquisition. Berkshire Hathaway was in the process of acquiring the Burlington Northern Santa Fe railroad, and they needed to use their stock as part of the transaction. A lower share price for the Class B stock made it easier to manage the large number of shares required for the deal. This strategic move was approved by shareholders and allowed the acquisition to proceed smoothly. After the split, the Class B shares became eligible for inclusion in the S&P 500 index, further increasing their liquidity and visibility.
Step 3: Understanding the Implications of the Split
So, what does this all mean for an investor?
For BRK.A holders: The number of shares you hold has remained the same since you purchased them. The value of your investment is tied to the price per share, which has grown significantly over time due to the company's performance, not a change in the number of shares.
For BRK.B holders (pre-2010): If you owned 1 share of BRK.B before January 21, 2010, you would now own 50 shares. Your total investment value didn't change at the moment of the split, but you now hold more shares at a lower price per share. For example, if the pre-split price was $3,476, the post-split price was around $72.72. The total value of your holdings remained the same ($3,476 in one share vs. 50 shares at $72.72).
Step 4: Looking Forward - Will There Be Another Split?
BRK.A: It is highly unlikely that the Class A shares will ever split as long as Warren Buffett is leading the company or his successor maintains his core philosophy. His successor, Greg Abel, is expected to uphold the company's culture and investment ideals, including the no-split policy for Class A shares.
BRK.B: While it's not a regular occurrence, a future split of the Class B shares is possible if another major strategic event, like a large acquisition, requires it. However, with the rise of fractional share investing offered by many brokerages, the need for a stock split to increase accessibility has been reduced.
Frequently Asked Questions (FAQs)
How to buy Berkshire Hathaway Class A stock? To buy Class A stock (BRK.A), you need a brokerage account with a significant amount of capital, as a single share costs hundreds of thousands of dollars. You can't buy it directly from the company.
How to buy Berkshire Hathaway Class B stock? You can easily buy Class B stock (BRK.B) through any brokerage account. Search for the ticker "BRK.B" and place a buy order. Many brokerages also allow you to buy fractional shares, so you can invest a specific dollar amount instead of buying a whole share.
How to convert Berkshire Hathaway Class A shares to Class B shares? Yes, each Class A share can be converted into 1,500 Class B shares at any time. However, you cannot convert Class B shares into Class A shares.
How to understand the difference in voting rights between Class A and Class B? Class B shares have significantly fewer voting rights than Class A shares. A Class B share has 1/10,000th of the voting rights of a Class A share. This difference is relevant for shareholders who wish to have a say in corporate governance.
How to track the performance of Berkshire Hathaway stock? You can track the performance of both BRK.A and BRK.B on financial news websites, brokerage platforms, and through sources like Macrotrends, which provides historical stock price data.
How to know if a stock is likely to split? Companies typically split their stock to make it more affordable and liquid. Look for companies with high share prices and a history of splitting. However, in the case of BRK.A, the company's philosophy is a strong indicator against a split.
How to calculate the value of my Berkshire Hathaway shares after the 2010 split? If you held BRK.B shares before the 2010 split, simply multiply the number of shares you had by 50 to find out how many you own now. Your total investment value remained the same, just divided among more shares.
How to find out more about Warren Buffett's investment philosophy? A great way to learn about his philosophy is to read his annual letters to Berkshire Hathaway shareholders, which are available on the company's website.
How to determine if Berkshire Hathaway is a good investment for me? This depends on your personal financial goals and risk tolerance. Consider the company's fundamentals, management, and your own investment horizon. It is always wise to consult with a financial advisor before making any investment decisions.
How to find out about future corporate actions for Berkshire Hathaway? You can stay updated by following financial news, checking the company's investor relations website, and reviewing regulatory filings.