How Much Do Berkshire Hathaway Shares Cost? A Comprehensive Guide
Have you ever wondered about the stock that costs more than a luxury car, a house, or even a small island? That's right, we're talking about Berkshire Hathaway's Class A shares. You've likely heard of the legendary investor Warren Buffett and his company, but the price tag on a single share can be a real shocker. It's a number that makes you do a double-take, but don't worry, investing in Berkshire Hathaway isn't entirely out of reach for the average investor.
Let's dive into the fascinating world of Berkshire Hathaway's stock and break down exactly what you need to know.
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| How Much Do Berkshire Hathaway Shares Cost |
Step 1: Understand the Two Classes of Shares (A and B)
First things first, let's clear up a crucial point. Berkshire Hathaway has two different classes of common stock, and their prices are dramatically different.
Class A Shares (BRK.A): The "A" for Astronomical.
This is the legendary, high-priced stock that makes headlines. As of the last market close, a single Class A share (BRK.A) costs approximately $729,000 USD. Yes, you read that correctly. We're talking about a price tag that puts it in a league of its own.
Why so expensive? The main reason is simple: Warren Buffett, the company's CEO, has famously refused to split the Class A stock. He believes that a high share price attracts long-term, value-oriented investors who are less concerned with short-term price fluctuations. He wants shareholders who are aligned with his philosophy of building value over decades, not days.
Each Class A share holds significant voting rights, giving its holder a powerful voice in company matters.
Class B Shares (BRK.B): The "B" for Budget-Friendly.
This is the accessible option for most retail investors. To address the demand for a more affordable entry point, Berkshire Hathaway introduced Class B shares (BRK.B) in 1996.
The price of a Class B share is a fraction of the Class A share. As of the last market close, a single Class B share (BRK.B) is priced at around $485 USD.
This price point makes it incredibly accessible to a wide range of investors, from beginners to seasoned pros.
While you get a much smaller piece of the company with a Class B share, it is still a stake in the same underlying business. The key difference is in the voting rights: a Class B share has 1/10,000th of the voting rights of a Class A share.
The takeaway from Step 1? Don't let the Class A price scare you away. The Class B shares are the path for most investors.
Reminder: Revisit older posts — they stay useful.
Step 2: Compare the Value and Performance
While the price is vastly different, let's be clear: a Class B share is designed to represent a fraction of a Class A share. The ratio has changed over the years. Currently, one Class A share is equivalent to 1,500 Class B shares in terms of economic value. So, if you were to buy 1,500 Class B shares, their total value would be roughly the same as one Class A share.
Performance: Historically, both share classes track each other's performance very closely, as they represent the same underlying company and its diverse portfolio of businesses. You get exposure to everything from insurance (Geico) and railroads (BNSF) to energy (Berkshire Hathaway Energy) and a massive stock portfolio including giants like Apple and Coca-Cola.
Liquidity: The Class B shares have a much higher trading volume due to their accessibility, making them more liquid (easier to buy and sell) than the Class A shares.
Step 3: A Step-by-Step Guide to Buying Berkshire Hathaway Shares
Ready to take the plunge? Here's how you can purchase Berkshire Hathaway shares, focusing on the more accessible Class B stock.
Sub-heading: Step 3.1: Open a Brokerage Account
Tip: Reading in chunks improves focus.
This is your first and most important step. You need a platform to buy and sell stocks. If you don't have one, you'll need to open a brokerage account. Look for a reputable brokerage firm that offers access to US stocks on the NYSE.
What to look for:
Low or zero commission fees: Many modern brokerages offer commission-free trading for US stocks.
Fractional share investing: This is a game-changer for expensive stocks. If you don't have enough money to buy a full Class B share (or just want to invest a specific amount), fractional shares allow you to buy a portion of a share for a specific dollar amount (e.g., $50 worth of BRK.B).
User-friendly interface: A platform that is easy to navigate is essential, especially for beginners.
Sub-heading: Step 3.2: Fund Your Account
Once your brokerage account is set up, you need to add money to it. This can typically be done via a bank transfer (ACH transfer), wire transfer, or linking a debit card. Make sure you have the funds ready to invest.
Sub-heading: Step 3.3: Find the Stock and Place Your Order
Now for the exciting part!
QuickTip: Don’t skim too fast — depth matters.
Search for the ticker symbol. In your brokerage's trading platform, search for the stock using its ticker symbol: BRK.B.
Choose your order type. You'll have a few options:
Market Order: This tells your broker to buy the shares at the current best available price. It's simple and fast, but the price can fluctuate in the short time it takes to execute.
Limit Order: This allows you to set a specific price at which you want to buy the shares. The order will only be executed if the stock price drops to or below your set limit. This gives you more control over the price you pay.
Enter the amount. This is where fractional shares are a huge benefit. You can either specify the number of shares you want to buy (e.g., 2 shares) or the dollar amount you want to invest (e.g., $100).
Review and submit. Double-check all the details of your order before you hit the "buy" or "submit" button.
Step 4: Monitor Your Investment
Once your order is executed, you are officially a shareholder in Berkshire Hathaway! Now, the real work begins: patience. Warren Buffett's philosophy is all about long-term investing. He buys great businesses and holds them for the long haul.
Don't panic about short-term price movements.
Stay informed by reading the company's annual reports and news.
Consider adding to your position over time through dollar-cost averaging.
Frequently Asked Questions (FAQs)
How to find the real-time price of Berkshire Hathaway shares? You can find the real-time stock price for both BRK.A and BRK.B on major financial news websites, your brokerage platform, or dedicated stock market data providers.
How to buy fractional shares of Berkshire Hathaway? Most major online brokerages, such as Robinhood, Fidelity, Charles Schwab, and others, now offer fractional share investing. You can simply specify the dollar amount you want to invest rather than the number of shares.
QuickTip: Compare this post with what you already know.
How to convert Berkshire Hathaway Class A shares to Class B shares? You can convert Class A shares to Class B shares at any time, but not the other way around. This conversion is typically done through your brokerage firm, and the process is straightforward. One Class A share can be converted into 1,500 Class B shares.
How to invest in Berkshire Hathaway if I'm not in the US? You can invest in Berkshire Hathaway from outside the US by opening an international trading account with a brokerage that provides access to US stock exchanges. You may also be able to invest through ETFs or mutual funds that hold Berkshire Hathaway shares.
How to know if Berkshire Hathaway is a good investment for me? Investing in Berkshire Hathaway means you are investing in a diversified portfolio of businesses and a company led by a team with a strong track record. However, you should always do your own research (due diligence) and consider your personal financial goals and risk tolerance before investing in any stock.
How to check Berkshire Hathaway's financial performance? You can find Berkshire Hathaway's financial reports, including their annual report (Form 10-K) and quarterly reports (Form 10-Q), on their official investor relations website or through the SEC's EDGAR database.
How to attend the Berkshire Hathaway Annual Meeting? The Berkshire Hathaway Annual Shareholders Meeting, often called "Woodstock for Capitalists," is held annually in Omaha, Nebraska. Class A and Class B shareholders are invited to attend. You will need to show proof of share ownership to get in.
How to understand the difference in voting rights? Class A shares have significant voting power, allowing holders to influence company decisions. Class B shares have very limited voting power (1/10,000th of a Class A share), meaning they don't have a meaningful impact on corporate governance.
How to know if the Class A share price will ever go down? Like any stock, the price of Berkshire Hathaway's shares can go up or down based on market conditions, company performance, and other factors. However, the Class A stock has historically maintained its high price due to the company's policy against stock splits.
How to invest in Berkshire Hathaway for a child? You can open a custodial brokerage account, such as a Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account, and purchase BRK.B shares for a child. This is a great way to introduce them to investing and compound wealth over a long period.
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