Of course! Investing in a company like Berkshire Hathaway, led by the legendary Warren Buffett, is a goal for many investors. But the question, "How much to buy Berkshire Hathaway?" isn't as simple as it seems. It's not just about the share price; it's about your financial goals, risk tolerance, and the unique structure of the company's stock.
Let's dive into a comprehensive, step-by-step guide to help you navigate this process.
Step 1: Do you truly want to buy Berkshire Hathaway?
Before we get into the nitty-gritty of ticker symbols and brokerage accounts, let's take a moment for some self-reflection. Ask yourself: Why do I want to own a piece of Berkshire Hathaway?
Is it because you admire Warren Buffett's long-term value investing philosophy?
Do you believe in the diversified portfolio of companies under the Berkshire umbrella, from insurance and railroads to consumer goods?
Are you looking for a stable, long-term investment that is less volatile than individual tech stocks?
Understanding your motivation is the most crucial first step. This isn't just a stock; it's a piece of a diversified conglomerate with a unique management style. If you're looking for a quick buck, this might not be the right investment for you. Berkshire Hathaway is a company for long-term investors who believe in the power of compounding and the wisdom of its leadership.
| How Much To Buy Berkshire Hathaway |
Step 2: Understand the Two Classes of Stock: A vs. B
This is where the question of "how much to buy" gets interesting. Berkshire Hathaway has two classes of common stock, which are vastly different in price and voting rights.
Sub-heading: Class A Shares (BRK.A)
Price: As of June 2025, one share of Berkshire Hathaway Class A stock (BRK.A) costs approximately $729,000.
Voting Rights: Each Class A share has one full vote in company matters.
Liquidity: The trading volume for Class A shares is relatively low due to the high price, which can affect how easily you can buy or sell them.
Convertibility: Class A shares can be converted into Class B shares, but not the other way around.
For most individual investors, buying a single Class A share is not a realistic option due to the astronomical price. This share is designed for institutional investors and those who have been holding it for decades.
QuickTip: Skip distractions — focus on the words.
Sub-heading: Class B Shares (BRK.B)
Price: A single share of Berkshire Hathaway Class B stock (BRK.B) is significantly more affordable, trading around $485 as of June 2025.
Voting Rights: A Class B share has 1/10,000th of the voting rights of a Class A share. This means you have a vote, but your influence is minimal.
Liquidity: Class B shares are much more actively traded and liquid, making them easier to buy and sell.
Performance: The performance of BRK.B is directly tied to BRK.A, as they represent ownership in the same company. The price of BRK.B is set at 1/1500th of the price of a BRK.A share.
The Class B stock was created by Warren Buffett to make Berkshire Hathaway accessible to a wider range of investors, and for most people, this is the share class you will be buying.
Step 3: Choose Your Investment Vehicle and Brokerage
You can't just call up Warren Buffett and ask for a share. You need a platform to facilitate the transaction.
Sub-heading: Opening a Brokerage Account
If you don't already have one, you'll need to open a brokerage account. This is a special investment account where you can buy, sell, and hold various securities like stocks, ETFs, and mutual funds. Here are some key considerations:
Reputable Brokers: Choose a well-established and regulated brokerage firm.
Fees and Commissions: Look for brokers with low or zero commissions on stock trades.
Fractional Shares: This is a game-changer for investing in companies with high share prices. Many modern brokerages allow you to buy a fraction of a share, which means you can invest a specific dollar amount, even if it's less than the cost of one full share.
Sub-heading: Finding the Ticker Symbol
Tip: Read once for flow, once for detail.
Once your account is open and funded, you'll need to search for the stock. Use the ticker symbol BRK.B for the Class B shares. The ticker for the Class A shares is BRK.A, but as we've discussed, this is likely not the one you'll be buying.
Step 4: Decide on the Amount to Invest
This is the core of the user's question, and it's a decision that is entirely personal to you.
Sub-heading: Dollar-Cost Averaging
Instead of trying to time the market and buy all your shares at once, consider dollar-cost averaging. This involves investing a fixed amount of money at regular intervals (e.g., ₹5,000 every month). This strategy helps you average out your purchase price over time, reducing the risk of buying at a market peak.
Sub-heading: Fractional Shares: The Game-Changer
If your brokerage offers fractional shares, you can buy Berkshire Hathaway stock with as little as $1 or ₹100. This is a phenomenal way to start investing without needing a large lump sum. For example, if you want to invest ₹5,000, and the share price is ₹40,000, you can buy 0.125 of a share. This allows you to invest your entire desired amount without any money sitting idly in your account.
A single Class B share costs around $485, so if you're a new investor, you might start with a smaller amount and add to your position over time.
QuickTip: Go back if you lost the thread.
Step 5: Place Your Order
When you're ready, you'll place your order through your brokerage platform.
Sub-heading: Market vs. Limit Orders
Market Order: This is an order to buy or sell a security immediately at the best available current price. It's a quick way to execute a trade, but the price can fluctuate slightly between when you place the order and when it's filled.
Limit Order: This is an order to buy or sell a security at a specific price or better. For example, you can set a limit order to buy BRK.B at $480. Your order will only be executed if the price drops to or below that level. This gives you more control over the price you pay.
For long-term investors, a market order is usually sufficient for a liquid stock like BRK.B. However, if you are particular about your entry price, a limit order is a good option.
Step 6: Monitor and Hold
Congratulations, you are now a Berkshire Hathaway shareholder!
Don't check the price every day. The beauty of investing in a company like Berkshire Hathaway is its long-term stability. Warren Buffett advocates for a "buy and hold" strategy, so resist the urge to panic during market dips.
Stay informed. Read the annual reports and listen to the annual shareholder meeting to understand the company's performance and future outlook.
FAQ: Related Questions
Tip: The middle often holds the main point.
Here are 10 frequently asked questions about buying Berkshire Hathaway stock, with quick and clear answers.
How to find the Berkshire Hathaway stock price? You can find the real-time stock price for both BRK.A and BRK.B on financial news websites, brokerage platforms, or by simply searching for "BRK.A stock price" or "BRK.B stock price" on a search engine like Google.
How to buy Berkshire Hathaway Class A stock? To buy Class A (BRK.A) stock, you need to open a brokerage account that allows trading of high-priced shares and have the significant capital required to purchase a full share. Fractional shares for Class A are not as widely available as they are for Class B.
How to invest in Berkshire Hathaway with a small amount of money? The best way is to use a brokerage that offers fractional shares and buy the Class B stock (BRK.B). This allows you to invest any dollar amount you choose, even if it's less than the price of a full share.
How to choose between Class A and Class B shares? For the vast majority of individual investors, the Class B shares (BRK.B) are the only practical choice due to their affordability. Class A shares are primarily for institutional investors and those who wish to have a significant voting influence in the company.
How to buy Berkshire Hathaway stock in India? Indian investors can buy Berkshire Hathaway shares through a brokerage that offers international investing, often by purchasing fractional shares or a part of the whole stock value, with platforms like INDmoney.
How to use dollar-cost averaging to invest in Berkshire Hathaway? Set up a recurring investment with your brokerage to automatically buy a fixed dollar amount of BRK.B shares every week or month. This automates the process and helps you build your position over time.
How to buy Berkshire Hathaway through an ETF or index fund? You can gain exposure to Berkshire Hathaway's performance by investing in an S&P 500 index fund or an ETF that holds BRK.B as one of its top holdings. This provides diversification in addition to exposure to Berkshire.
How to convert Class A shares to Class B? Class A shares (BRK.A) can be converted into Class B shares (BRK.B) at any time. You would contact your brokerage to initiate this process. The conversion rate is 1 BRK.A to 1,500 BRK.B shares.
How to determine if Berkshire Hathaway is a good investment for me? Assess your personal financial goals and risk tolerance. While Berkshire Hathaway is considered a stable, long-term investment, all stock investments carry risk. It's best suited for investors with a long-term horizon who believe in the company's underlying businesses.
How to research Berkshire Hathaway before buying? You can research the company by reading its annual and quarterly reports (available on its investor relations website), analyzing its financial statements (revenue, net income, etc.), and following news and analysis from reputable financial sources.