Let's embark on a journey to uncover the number of outstanding shares of Berkshire Hathaway, one of the most unique and iconic companies in the world! This isn't just a simple number; it's a window into the company's capital allocation strategy, led by the legendary Warren Buffett.
Step 1: Understand the Two Share Classes - It's Not as Simple as One Number!
Did you know that Berkshire Hathaway has two different classes of common stock? Before we can even begin to count, you need to understand this fundamental difference. This is what makes Berkshire Hathaway's share structure so special.
Class A Shares (BRK.A): These are the original, ultra-expensive shares that have never undergone a stock split. They are the shares that Warren Buffett and his long-time partner, Charlie Munger, have held for decades.
Class B Shares (BRK.B): These were created in 1996 to make Berkshire Hathaway stock more accessible to a wider range of investors. They are a fraction of the price of Class A shares and have lower voting rights.
So, when we talk about outstanding shares, we need to look at both classes separately and then often consider them in a combined, or "equivalent," form.
Step 2: Find the Latest Data in Official Filings
To get the most accurate and up-to-date information, we need to go to the source: Berkshire Hathaway's official regulatory filings with the U.S. Securities and Exchange Commission (SEC). This is the most reliable place to find this information.
Sub-heading: Where to Look The most recent and accurate information is typically found in the company's quarterly reports (Form 10-Q) and annual reports (Form 10-K). These filings are publicly available on the SEC's EDGAR database. You can also find them on the investor relations section of the Berkshire Hathaway website.
Sub-heading: Analyzing the Recent Filings Based on the most recent filings available (as of the first quarter of 2025):
Class A Shares Outstanding: According to recent data, there are approximately 1.44 million outstanding Class A shares (BRK.A). It's a small number, which is one of the reasons the share price is so high.
Class B Shares Outstanding: The number of Class B shares (BRK.B) is significantly larger. As of the first quarter of 2025, there are around 2.16 billion outstanding Class B shares.
Note: It's important to remember that these numbers can change slightly over time due to share buybacks. Berkshire Hathaway has a history of repurchasing its own shares, especially when Warren Buffett believes the stock is trading below its intrinsic value.
Step 3: Calculating the Total and Equivalent Shares
Now that we have the numbers for both classes, let's put them together to understand the total picture.
Sub-heading: Understanding the Conversion Ratio The conversion ratio between the two classes is key. One Class A share can be converted into 1,500 Class B shares. However, the reverse is not true. You cannot convert Class B shares into Class A shares. This is a critical detail.
Sub-heading: Calculating Total Shares Outstanding To get a total picture of the shares outstanding, we can calculate the Class A equivalent shares. Here's how:
Total Class A equivalent shares = (Number of Class A shares) + (Number of Class B shares / 1500)
Let's use the recent numbers:
Total Class A equivalent shares = 1,440,000 + (2,160,000,000 / 1500)
Total Class A equivalent shares = 1,440,000 + 1,440,000
Total Class A equivalent shares = 2,880,000
This calculation gives us a clearer picture of the total equity ownership in the company, represented in terms of the original, more powerful Class A shares.
Step 4: Why This Number Matters
Understanding the number of outstanding shares is more than just a trivia fact for investors. It has a direct impact on several key financial metrics and company activities.
Earnings Per Share (EPS): The number of outstanding shares is the denominator in the EPS calculation. When a company buys back shares, the number of outstanding shares decreases, which can increase the EPS, even if the net earnings remain the same. This is a common practice at Berkshire Hathaway.
Market Capitalization: This is calculated by multiplying the share price by the number of shares outstanding. For Berkshire Hathaway, you would need to calculate the market cap for both Class A and Class B shares and then add them together.
Voting Power: The difference in voting rights between Class A and Class B shares is significant. Each Class A share has the voting power of 10,000 Class B shares. This means that even with a much smaller number of outstanding shares, Class A holders, and especially Warren Buffett, maintain a firm grip on control.
It is fascinating to see how a company like Berkshire Hathaway uses its capital to its advantage, and share buybacks are a prime example of that strategy in action.
10 Related FAQ Subheadings
How to find the latest number of outstanding Berkshire Hathaway shares? You can find the latest numbers in Berkshire Hathaway's quarterly (10-Q) and annual (10-K) reports filed with the SEC, which are available on the SEC's EDGAR database or the company's investor relations website.
How to calculate the total market capitalization of Berkshire Hathaway? Calculate the market cap for each share class by multiplying the number of outstanding shares by the current market price for each (BRK.A and BRK.B) and then add the two results together.
How to understand the difference between BRK.A and BRK.B shares? BRK.A shares have a much higher price, greater voting rights, and can be converted into BRK.B shares. BRK.B shares are more affordable and have lower voting rights, making them accessible to a wider range of investors.
How to interpret share buybacks by Berkshire Hathaway? Berkshire Hathaway's share buybacks signal that management, led by Warren Buffett, believes the stock is undervalued. This action can increase earnings per share and is a form of capital return to shareholders.
How to convert Class A shares into Class B shares? A holder of a Class A share can convert it into 1,500 Class B shares at any time. This conversion is a one-way street; Class B shares cannot be converted back to Class A shares.
How to calculate Berkshire Hathaway's book value per share? Book value per share is calculated by dividing the company's total shareholders' equity by the number of Class A equivalent shares outstanding.
How to track Warren Buffett's personal stake in Berkshire Hathaway? Warren Buffett's ownership is publicly disclosed in SEC filings, such as Form 4 and Form 13F, which report changes in beneficial ownership and institutional holdings.
How to get a comprehensive overview of Berkshire Hathaway's financials? Review the company's annual report (Form 10-K), which includes a detailed financial statement, a letter from Warren Buffett to shareholders, and a breakdown of the company's diverse business segments.
How to participate in the Berkshire Hathaway annual meeting? To attend the legendary annual meeting in Omaha, you must own at least one share of Berkshire Hathaway stock (either BRK.A or BRK.B).
How to find historical data on Berkshire Hathaway's shares outstanding? Historical data can be found in the company's past annual and quarterly reports, as well as on financial data websites that track this information over time.