Of course! Investing in a company as iconic as Berkshire Hathaway can be a great step in your investment journey. Here is a very lengthy, step-by-step guide on how to invest in Berkshire Hathaway from the UK, designed to be engaging and informative.
A Beginner's Guide: How to Invest in Berkshire Hathaway from the UK
Have you ever wondered how to own a piece of a company run by one of the most legendary investors of all time, Warren Buffett? You're not alone! Berkshire Hathaway, the conglomerate he built, is a dream investment for many. The good news is, even if you're in the UK, you can absolutely invest in it. This guide will walk you through the process, step by step, so you can join the ranks of shareholders in this incredible company.
Step 1: Understand What You're Buying – A Tale of Two Shares
Before you do anything else, let's talk about the two different types of Berkshire Hathaway shares. This is a crucial first step, so pay close attention.
Berkshire Hathaway Class A shares (Ticker: BRK.A): These are the original, and famously expensive, shares. As of June 2025, a single Class A share trades for a jaw-dropping price, often over $700,000! Warren Buffett has intentionally kept the price high to attract long-term investors who aren't focused on short-term price movements. If you're a retail investor, this is likely out of your reach, and that's okay.
Berkshire Hathaway Class B shares (Ticker: BRK.B): This is the more accessible option for most investors. Created in 1996, Class B shares were introduced to allow a broader range of investors to own a piece of Berkshire Hathaway. They trade at a much lower price, typically in the hundreds of dollars, making them a much more realistic investment for individuals. They have the same economic interest in the company as Class A shares, just with a lower price, lower voting rights (1/10,000th of a Class A share), and are not convertible into Class A shares.
For the purpose of this guide, we will focus on investing in the more accessible BRK.B shares.
Step 2: Choose Your Investment Vehicle
Now that you know which shares to target, you need a place to hold them. In the UK, you have a few excellent options, each with its own tax implications. This choice is vital and can save you a significant amount of money in the long run.
Sub-heading: The Tax-Efficient Routes
Stocks and Shares ISA (Individual Savings Account): This is often the best choice for UK residents. Any profits you make from capital gains or dividends on investments held within a Stocks and Shares ISA are completely free from UK Income Tax and Capital Gains Tax. The annual ISA allowance is currently £20,000. This means you can invest up to this amount each tax year without worrying about a tax bill on your gains. For a long-term investment like Berkshire Hathaway, this is a huge advantage.
Why it's great for BRK.B: If Berkshire's value continues to grow, and you sell your shares for a profit down the line, that entire profit is tax-free within your ISA. It's a no-brainer for most investors.
SIPP (Self-Invested Personal Pension): A SIPP is a personal pension wrapper that allows you to manage your own investments. You get tax relief on contributions, which is a great boost to your investment. However, the money is locked away until you reach a certain age, currently 55 (rising to 57 from 2028).
Why it's great for BRK.B: If you're investing for retirement, a SIPP is a fantastic option. You get the tax relief on the way in and all the growth is tax-free inside the SIPP. Just be aware of the long-term commitment.
Sub-heading: The Flexible Route
General Investment Account (GIA) or Share Dealing Account: This is a standard brokerage account. It's flexible because there are no annual contribution limits. However, any profits you make may be subject to Capital Gains Tax (CGT) and dividends will be subject to Income Tax. You do have an annual CGT allowance (£3,000 for the 2024/25 tax year), but anything above that is taxable.
Why you might choose it: If you've already maxed out your ISA allowance or need the flexibility to access your funds before retirement, a GIA is a good alternative.
Step 3: Find a UK Broker That Offers US Stocks
You can't buy shares directly from Berkshire Hathaway. You need to use a stockbroker or an investment platform. It's crucial to choose one that allows you to trade US-listed stocks.
Sub-heading: Research and Compare Platforms
Look for a broker that offers access to the US market (NYSE, where BRK.B is listed). Here are some popular UK platforms to consider:
Hargreaves Lansdown (HL): A very well-known and reputable UK platform with a wide range of investment options, including US stocks.
Interactive Investor (ii): Another popular platform that offers a flat-fee model, which can be cost-effective for larger portfolios.
Fidelity International: Offers a user-friendly platform and a good selection of US shares.
AJ Bell: A well-regarded platform with competitive fees.
Trading 212 or Freetrade: These are popular commission-free trading apps that make it easy to buy US stocks with lower fees. Be sure to check their specific fees for currency conversions.
Interactive Brokers: A global platform known for its low costs and wide range of markets, ideal for more active traders.
When comparing brokers, consider the following:
Fees: Check for dealing charges (the cost to buy and sell), platform fees (an annual fee for holding investments), and especially currency conversion fees. Since you'll be buying US dollars to purchase the shares, the FX fee is a key consideration.
Account Types: Does the broker offer a Stocks and Shares ISA or a SIPP?
Fractional Shares: Some platforms, like Trading 212 and Freetrade, allow you to buy fractional shares. This means you can invest a specific cash amount (e.g., £100) instead of buying a whole share, which is a great way to start small.
W-8BEN Form: When you invest in US stocks from the UK, you'll need to complete a W-8BEN form. This is a tax form that proves you're not a US resident and helps reduce the US withholding tax on dividends from 30% to 15% under the US-UK tax treaty. Most UK brokers will guide you through this process during the account opening.
Step 4: Open and Fund Your Account
Once you've chosen your broker, it's time to open an account.
Go to the broker's website and choose the account type you want (e.g., Stocks and Shares ISA).
Complete the online application. You'll need to provide personal details like your address, National Insurance number, and some form of ID (like a passport or driver's license).
Fund your account. You can typically do this via bank transfer or debit card. Remember, you'll need to convert your GBP to USD to buy the US-listed shares. The platform will handle the currency conversion for you, but be mindful of the exchange rate and any fees.
Step 5: Place Your Order!
You're almost there! Your account is open and funded. Now for the exciting part.
Log in to your brokerage account.
Use the search function to find Berkshire Hathaway. The ticker you'll use is BRK.B.
Review the current share price. Look at the chart and recent news to get a feel for the market.
Decide on your order type.
Market Order: This will buy the shares at the best available price right now. It's simple and fast.
Limit Order: This allows you to set a maximum price you're willing to pay per share. Your order will only be executed if the share price drops to or below your specified limit. This gives you more control.
Enter the amount you want to buy. This could be a number of shares or a specific cash amount (if fractional shares are available).
Review your order details, including any fees, and confirm.
Congratulations! You are now a shareholder in Berkshire Hathaway.
Step 6: Monitor Your Investment and Stay Informed
Investing is a long-term game, and this is especially true for a company like Berkshire Hathaway.
Keep an eye on your portfolio, but don't obsess over daily price fluctuations. Warren Buffett himself advocates for a long-term, buy-and-hold strategy.
Stay informed about the company. Read Berkshire Hathaway's annual reports and follow the news.
Remember to use your ISA allowance each tax year to continue making tax-efficient investments.
10 FAQs: Quick Answers to Your Questions
Here are some quick answers to common questions about investing in Berkshire Hathaway from the UK.
How to buy Berkshire Hathaway Class A shares from the UK?
While you can, it's generally not practical for most retail investors due to the extremely high share price (hundreds of thousands of dollars per share). The process is the same as for Class B shares, but you'll need a very large sum of money.
How to find a UK broker that offers US stocks?
Research online platforms like Hargreaves Lansdown, Interactive Investor, AJ Bell, Fidelity, Trading 212, and Interactive Brokers. Check their 'international' or 'US shares' sections to confirm they offer access to the NYSE.
How to complete the W-8BEN form for tax purposes?
Your chosen broker will usually provide the W-8BEN form for you to fill out online as part of the account opening process. It's a straightforward form that reduces the US withholding tax on dividends.
How to invest in Berkshire Hathaway with a small amount of money?
Look for platforms that offer fractional shares, such as Trading 212 or Freetrade. This allows you to invest a specific amount of money (e.g., £50 or £100) and own a fraction of a share.
How to check the current price of Berkshire Hathaway shares in the UK?
You can check the price on financial news websites (like Bloomberg or Reuters), your chosen brokerage platform's website, or the London Stock Exchange, which lists the Class B shares as a CDI (Crest Depositary Interest) under the ticker 0R37.
How to get tax relief on my Berkshire Hathaway investment?
By investing through a Stocks and Shares ISA or a SIPP, you can benefit from significant UK tax advantages. Any profits or dividends within these wrappers are free from UK tax.
How to receive dividends from Berkshire Hathaway shares?
Berkshire Hathaway does not pay a dividend. The company's strategy, under Warren Buffett, is to reinvest all its earnings back into the business, which is a key part of its growth strategy.
How to choose between an ISA and a SIPP for this investment?
Choose an ISA if you want the flexibility to access your money at any time. Choose a SIPP if you are investing specifically for retirement and don't need the money until at least age 55.
How to avoid high currency conversion fees?
Compare the FX rates and fees charged by different brokers. Some platforms have a fixed fee, while others charge a percentage. This can have a big impact on your total cost.
How to research Berkshire Hathaway before investing?
Read the annual shareholder letters written by Warren Buffett. They are famous for their wisdom and insight into the company's performance and philosophy. You can find them on the official Berkshire Hathaway investor relations website.