Here is a comprehensive, step-by-step guide on how to invest in Berkshire Hathaway stock.
Are you ready to join the ranks of investors in one of the world's most legendary companies, a company led by the one and only Warren Buffett? Investing in Berkshire Hathaway isn't just about buying a stock; it's about buying a piece of a vast, diversified empire with holdings in everything from insurance and railroads to utilities and iconic consumer brands. If you're ready to learn how to do it, you've come to the right place.
Step 1: Understand What You're Buying: The Two Classes of Berkshire Hathaway Stock
Before you do anything else, it is absolutely crucial to understand that Berkshire Hathaway offers two distinct classes of stock. This is a key detail that can make or break your investment plan. The company trades on the New York Stock Exchange (NYSE) under two different ticker symbols:
BRK.A (Class A Shares): These are the original, incredibly expensive shares. As of June 2025, a single share of BRK.A is trading for over $729,000. This is because Warren Buffett has famously refused to split the stock, believing it attracts long-term, value-oriented investors who think like business owners, not speculators. These shares come with full voting rights, giving their holders a say in company matters. Due to their astronomical price, they are out of reach for most individual investors.
BRK.B (Class B Shares): Introduced in 1996, these are the "baby B's" designed to make investing in Berkshire Hathaway accessible to a wider audience, including retail investors. The price of a BRK.B share is a mere fraction of the Class A share, currently trading in the range of $485. These shares have 1/10,000th of the voting rights of a Class A share. While they have limited voting power, their economic performance is tied directly to the performance of the company, just like the Class A shares. The vast majority of individual investors buy BRK.B shares.
The key takeaway here is to decide which class of stock is right for you, based on your budget and investment goals. For nearly everyone, BRK.B will be the only practical option.
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| How Can I Invest In Berkshire Hathaway Stock |
Step 2: Open a Brokerage Account
You cannot buy Berkshire Hathaway stock directly from the company. You need a brokerage account, which is a specialized account that allows you to buy and sell securities like stocks, bonds, and mutual funds.
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2.1. Choose the Right Brokerage Firm
Selecting a brokerage firm is a pivotal decision. Consider the following factors:
Commissions and Fees: Many online brokerages now offer commission-free trading for stocks and ETFs. However, be sure to check for any hidden fees, such as account maintenance fees or fees for certain types of trades.
Minimum Investment: Some brokerages have a minimum deposit to open an account. Look for a brokerage that fits your financial capacity.
Access to US Stocks: Since Berkshire Hathaway is a US-listed company, you need a brokerage that provides access to US stock markets. This is particularly important for investors outside of the United States, like those in India, where you'll need an international or US-specific trading account.
Fractional Shares: If even the Class B shares are too expensive for you, many modern brokerages offer the option to buy fractional shares. This means you can invest a specific dollar amount (e.g., $100) and own a portion of a share, rather than a full share. This is an excellent way to start investing with a smaller amount of capital.
User Interface and Tools: A good platform should be easy to use and provide you with research tools, charts, and real-time data to help you make informed decisions.
2.2. Complete the Account Opening Process
Opening a brokerage account is a straightforward process, but it requires some documentation. Be prepared with the following:
Proof of Identity: A valid government-issued ID like a PAN card, Aadhaar card, passport, or driver's license.
Proof of Address: A utility bill, bank statement, or other official document showing your current address.
PAN Card Copy (for Indian citizens).
Bank Account Details: You will need to link your bank account to your brokerage account to transfer funds.
The process is typically done online and can be completed in a matter of minutes to a few hours, depending on the brokerage and verification process.
Step 3: Fund Your Brokerage Account
Once your account is open and verified, you need to add money to it. This can usually be done via:
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Bank Transfer (NEFT/RTGS/IMPS): The most common method.
UPI: Some brokerages in India now support UPI for instant transfers.
Wire Transfer: A good option for larger amounts.
Credit/Debit Card: Less common and may have fees.
Ensure you have enough funds in your account to cover the cost of the shares you want to buy, plus any associated fees or taxes.
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Step 4: Place Your Order for Berkshire Hathaway Stock
Now for the exciting part!
4.1. Search for the Stock:
In your brokerage platform, navigate to the search bar and type in the ticker symbol for the stock you want to buy: BRK.B.
4.2. Choose Your Order Type:
There are two primary order types you need to know:
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Market Order: This is the simplest type of order. You are telling the broker to buy the stock immediately at the best available market price. The price you see on the screen might change slightly by the time the order is executed. This is best for investors who want to buy the stock right away without worrying about minor price fluctuations.
Limit Order: This allows you to set a specific price at which you want to buy the stock. For example, if BRK.B is trading at $485 but you only want to buy it if the price drops to $480, you can place a limit order at $480. Your order will only be executed if and when the stock reaches that price. This is a great tool for investors who want to be more strategic about their entry point.
4.3. Specify the Quantity:
Decide how many shares you want to buy, or, if your brokerage offers it, the dollar amount you want to invest in fractional shares.
4.4. Review and Submit:
Review all the details of your order—the ticker, the order type, the quantity, and the estimated cost—before clicking the "Buy," "Submit," or "Place Trade" button.
Step 5: Hold Your Investment for the Long Term
Warren Buffett's famous philosophy is to "buy a business, not a stock." He believes in holding investments for the long term and riding out market fluctuations. His most successful investments, like Coca-Cola and American Express, have been held for decades.
Don't check the stock price every day. This can lead to emotional decisions and impulsive selling.
Focus on the fundamentals of the company. Read Berkshire Hathaway's annual reports and letters to shareholders to understand its business segments and management's thinking.
Consider a long-term perspective. Investing in Berkshire Hathaway is a bet on the enduring value of its diverse portfolio and the wisdom of its leadership.
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Frequently Asked Questions (FAQ) on Investing in Berkshire Hathaway Stock
How to open a brokerage account in India to buy US stocks? To invest in US stocks from India, you need to open an international trading account or a brokerage account that specifically allows trading in US equities. Platforms like Groww and INDmoney provide this service. The process involves KYC verification, which includes submitting your PAN card and address proof.
How to choose between BRK.A and BRK.B shares? For the vast majority of individual investors, the choice is clear: BRK.B shares are the practical and affordable option. BRK.A shares, with their price of over $700,000, are primarily for institutional or ultra-high-net-worth investors who want the full voting rights.
How to buy fractional shares of Berkshire Hathaway? Many modern brokerage platforms, including international ones, offer fractional share trading. When placing a buy order, you simply select the option to invest a specific dollar amount (e.g., $100 or $500) instead of a set number of shares. The platform will then purchase the corresponding fraction of a share for you.
How to know if Berkshire Hathaway stock is a good investment? While this post is not investment advice, you can evaluate the company by researching its financial health, diversified holdings (insurance, railroads, utilities, etc.), management team (led by Warren Buffett), and long-term track record. It's considered a blue-chip, value-oriented stock, but every investment carries risk.
How to find the current stock price of BRK.A and BRK.B? You can find the live stock prices on financial news websites like Google Finance, Yahoo Finance, Nasdaq, or within your brokerage platform. Just search for the ticker symbols BRK.A and BRK.B.
How to calculate the value of Berkshire Hathaway shares? Valuing a complex company like Berkshire Hathaway requires advanced financial analysis. Analysts often use metrics like Price-to-Book (P/B) ratio, earnings per share (EPS), and cash flow analysis. For an individual investor, it's more about understanding the underlying businesses and their long-term potential.
How to invest in Berkshire Hathaway indirectly? You can invest indirectly by buying a mutual fund or Exchange-Traded Fund (ETF) that holds Berkshire Hathaway stock as part of its portfolio. This gives you exposure to the company without buying individual shares. Look for large-cap value funds or ETFs that track the S&P 500, as BRK.B is a component of the index.
How to learn about Warren Buffett's investment philosophy? Read his annual letters to shareholders, which are available for free on the Berkshire Hathaway website. This is the single best resource to understand his principles of value investing, buying quality businesses with a "moat," and holding for the long term.
How to handle taxes on your investment gains from Berkshire Hathaway stock? This is a critical step. When you sell your shares for a profit, you will be subject to capital gains tax. The tax implications can vary based on your country of residence and the duration of your holding (short-term vs. long-term gains). It is highly recommended to consult with a financial advisor or tax professional to understand your specific tax obligations.
How to get started with a small amount of money? The best way to start is by using a brokerage that offers fractional shares. This allows you to invest as little as a few dollars and gradually build your position in the company over time. You can set up a recurring investment plan to automatically invest a small amount each week or month, a strategy known as rupee cost averaging.
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