Hello there! So, you're considering investing in Berkshire Hathaway, the legendary company helmed by the Oracle of Omaha, Warren Buffett. That's a fantastic first step in your investment journey! But a question that pops up for many aspiring investors is: "How much should I invest in Berkshire Hathaway?"
The answer isn't a simple number, but a step-by-step process that depends entirely on your financial situation, goals, and risk tolerance. Let's break it down and guide you through the process, from understanding the different share classes to placing your first order.
Step 1: Understand the Two Tickers - BRK.A vs. BRK.B
Before you even think about a specific amount, you need to know what you're buying. Berkshire Hathaway has two classes of stock, and the difference is huge.
BRK.A (Class A Shares): These are the original, and famously expensive, shares. They have never had a stock split, a decision made by Warren Buffett himself to attract long-term, like-minded investors. As of late June 2025, one single share of BRK.A costs over $700,000. That's not a typo. The price is designed to be a barrier for short-term traders and to ensure shareholders have a significant stake in the company. You get one vote per share.
BRK.B (Class B Shares): Introduced in 1996, these shares were created to make Berkshire Hathaway accessible to smaller investors. They are a fraction of the price of the Class A shares. As of late June 2025, one share of BRK.B is priced around $485. They are a much more liquid and affordable option for most people. You get 1/10,000th of the voting rights of a Class A share, and one BRK.A share is convertible into 1,500 BRK.B shares.
The first and most important decision is which class of shares is right for you. For the vast majority of individual investors, the BRK.B shares are the only realistic and practical option.
Step 2: Assess Your Investment Goals and Financial Situation
Now that you know which shares to target, let's talk about the "how much" part. There is no one-size-fits-all answer.
Sub-heading: Determine Your Investment Budget
Rule of Thumb: A common guideline is to invest only what you can afford to lose. While Berkshire Hathaway is a solid, long-term investment, the stock market always carries risk. Never invest money you might need for living expenses, an emergency fund, or a short-term goal like a down payment on a car.
Fractional Shares: If you're a new investor or have a limited budget, many brokerage platforms now offer the option to buy fractional shares. This means you can invest a specific dollar amount, say $100 or $500, and own a fraction of a BRK.B share. This is a game-changer and makes investing in a company like Berkshire Hathaway accessible to everyone. So, even if you can't afford the full share price, you can still get started.
Sub-heading: Consider Your Portfolio Diversification
Don't Put All Your Eggs in One Basket: This is a fundamental rule of investing. While Berkshire Hathaway is a well-diversified company in itself, with holdings in insurance, energy, and a massive stock portfolio (including giants like Apple, Coca-Cola, and American Express), it is still a single company stock.
Ideal Portfolio Allocation: A good approach is to allocate a portion of your investment portfolio to individual stocks, another portion to ETFs or mutual funds, and a portion to other assets like bonds. A common allocation for a growth-oriented portfolio might be 60-70% in stocks, with 5-10% in a single stock like Berkshire Hathaway. This ensures that if one company has a downturn, your entire portfolio isn't wiped out.
Step 3: Open a Brokerage Account
You can't buy shares directly from Berkshire Hathaway. You need a brokerage account.
Sub-heading: Choose the Right Brokerage
Look for a brokerage that offers:
Low or Zero Trading Fees: Many modern brokerages have eliminated commissions on stock trades.
Access to US Markets: Make sure the platform allows you to trade US stocks (NYSE: BRK.B).
Fractional Share Investing: If you plan to invest a specific dollar amount, this feature is essential.
User-Friendly Interface: For new investors, a simple and intuitive platform is key.
Sub-heading: Fund Your Account
Once your account is open, you'll need to transfer money from your bank account to your brokerage account. This can be done via various methods like bank transfers or UPI, depending on your brokerage and location.
Step 4: Research and Place Your Order
Now for the exciting part!
Sub-heading: Do Your Own Research
While Warren Buffett's track record is a testament to the company's value, it is crucial to do your own research.
Read Berkshire Hathaway's Annual Reports: You can find these on their official website. This will give you insights into their businesses and financial health.
Understand their Business Segments: Berkshire Hathaway is a conglomerate with diverse businesses, from insurance (GEICO) and railroads to manufacturing and utilities. Understanding these segments gives you a better picture of the company's value.
Follow the News: Stay updated on news related to Berkshire Hathaway and its major holdings.
Sub-heading: Place the Trade
Search for the Ticker: In your brokerage account, search for the ticker symbol BRK.B.
Choose Your Order Type:
Market Order: This will execute your trade at the best available price at that moment. It's simple and quick.
Limit Order: This allows you to set a specific price at which you want to buy the shares. Your order will only be executed if the stock price reaches that limit. This gives you more control.
Specify Your Investment Amount: Here's where you decide how much to invest. You can either buy a specific number of shares or, if available, a specific dollar amount. For example, you could buy 2 shares of BRK.B or invest $500 in BRK.B.
Review and Submit: Double-check all the details of your order before submitting it.
The Final Word: Think Like an Owner
Warren Buffett's philosophy is to "buy businesses, not stocks." When you invest in Berkshire Hathaway, you are becoming a part-owner of a global conglomerate with a proven track record. Your focus should be on the long-term value of the business, not on daily stock price fluctuations. This patient, disciplined approach is what has made so many of Berkshire's investors successful over the decades.
Related FAQ Questions
Here are 10 related questions that will help you on your investment journey:
How to buy Berkshire Hathaway stock in India?
You can buy Berkshire Hathaway stock from India through a brokerage firm that offers international or US stock investing, such as INDmoney or Groww. You will need to complete KYC (Know Your Customer) with documents like PAN and Aadhaar.
How to buy fractional shares of Berkshire Hathaway?
Many modern brokerages like Zerodha, Groww, and others offer fractional share investing, which allows you to buy a portion of a share with a specific dollar amount instead of having to purchase the full share.
How to check the current price of BRK.B?
You can check the live price of BRK.B on financial news websites like Bloomberg, Reuters, or Yahoo Finance, or directly on your brokerage platform.
How to calculate the return on my Berkshire Hathaway investment?
You can calculate your return by taking the current value of your investment, subtracting your initial investment amount, and then dividing that number by your initial investment. For example, if you invested $500 and it's now worth $600, your return is ($600 - $500) / $500 = 20%.
How to sell Berkshire Hathaway shares?
You can sell your shares through your brokerage account in the same way you bought them, by placing a sell order. You can choose a market order or a limit order for the sale.
How to understand Berkshire Hathaway's financials?
You can understand their financials by reading their quarterly and annual reports (Form 10-Q and 10-K) available on their investor relations website. Look for key metrics like revenue, net income, and book value.
How to attend the Berkshire Hathaway Annual Meeting?
To attend the famous annual meeting in Omaha, you must own at least one share of either BRK.A or BRK.B. Your brokerage will provide you with a proxy statement that includes a letter allowing you to obtain a credential for entry.
How to get dividends from Berkshire Hathaway?
Berkshire Hathaway has a long-standing policy of not paying dividends. Instead, they reinvest all earnings back into the company, which is a key part of their growth strategy.
How to know if Berkshire Hathaway is a good investment for me?
Berkshire Hathaway is generally considered a long-term, value-oriented investment. It may be a good fit if you have a long investment horizon, a moderate-to-low risk tolerance, and believe in the value of their underlying businesses and management.
How to find out what stocks Berkshire Hathaway owns?
You can find a list of Berkshire Hathaway's stock holdings in their quarterly Form 13F filings with the U.S. Securities and Exchange Commission (SEC). These filings are public and provide a snapshot of their equity portfolio.