Your Guide to Investing in the 'Baby Berkshire'
Have you ever wanted to invest in a company led by the legendary Warren Buffett, but felt that the price tag was simply out of reach? You're not alone. Berkshire Hathaway's Class A shares (BRK.A) famously trade at a price so high that it's often the subject of financial news headlines. But what if I told you there’s a much more accessible way to own a piece of this iconic conglomerate?
Welcome to the world of Berkshire Hathaway Class B stock, or as it's affectionately known, the "Baby Berkshire." This class of stock was created specifically to be more affordable for individual investors like you and me. Buying it is a straightforward process, and with this comprehensive guide, you’ll have all the steps you need to get started.
Let's dive right in.
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| How To Buy Berkshire Hathaway Class B Stock |
Step 1: Choose Your Investment Partner: The Brokerage Account
Before you can even think about buying a single share of stock, you need a place to hold it. You can't just buy shares from Berkshire Hathaway directly; you need an intermediary. This is where a brokerage account comes in.
So, are you ready to take the first and most crucial step on your investing journey?
A brokerage account is an investment account that allows you to buy and sell securities like stocks, bonds, mutual funds, and ETFs. Think of it as a bank account, but for your investments.
Choosing the Right Brokerage Firm
Selecting a brokerage firm is a personal decision and the foundation of your investment journey. Here are some key factors to consider:
Commissions and Fees: Look for a broker that offers low or zero-commission trading for stocks. This is the new industry standard, and you shouldn't have to pay a fee every time you buy or sell a stock.
Regulatory Oversight: Ensure the brokerage is regulated by a trusted authority like the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) if you're in the US, or a similar body in your country. This helps protect your investments.
Platform and Tools: Is the platform easy to use? Does it have a mobile app? Does it offer research tools, news, and real-time data? A user-friendly interface is crucial, especially for new investors.
Account Types: Decide if a standard brokerage account is right for you, or if you want a tax-advantaged account like a Roth IRA or Traditional IRA for retirement savings.
Opening and Funding the Account
Once you've chosen a brokerage, the process is quite simple:
Sign Up: Go to the broker's website or app and start the account creation process.
Provide Personal Information: You'll need to provide basic details like your name, address, date of birth, and Social Security number (or equivalent tax ID).
Verify Your Identity: You’ll typically need to upload a copy of a government-issued ID (like a passport or driver's license) and a proof of address (like a utility bill). This is part of the "Know Your Customer" (KYC) process.
Fund Your Account: After your account is approved, you can transfer money into it. The most common methods are linking your bank account (ACH transfer), wire transfer, or even depositing a check.
Congratulations, you've just established your base of operations for investing!
Step 2: Locate the Stock using the Ticker Symbol
With funds in your brokerage account, the next step is to find Berkshire Hathaway Class B stock. This is where the ticker symbol becomes your best friend.
A ticker symbol is a unique abbreviation used to identify a publicly traded stock. For Berkshire Hathaway Class B, the ticker is BRK.B.
Go to the trading or search section of your brokerage platform.
Type in "BRK.B" or "Berkshire Hathaway Inc. Class B".
You will see the stock's current price, historical chart, and other relevant information.
Pro Tip: Make sure you search for BRK.B, not BRK.A. The price difference is enormous! BRK.A is for institutional investors and those with a very, very large amount of capital.
QuickTip: Go back if you lost the thread.
Step 3: Conduct Your Due Diligence (Research!)
Now comes the fun part and the most important part of responsible investing: research. You're not just buying a piece of paper; you're buying a piece of a company.
Understand What You're Buying
Berkshire Hathaway isn't a traditional company that makes one product. It's a massive conglomerate, a holding company that owns a diverse portfolio of businesses and stocks. When you buy BRK.B, you're buying a tiny slice of this incredible empire.
Its holdings include:
Wholly Owned Businesses: These are companies Berkshire owns completely, such as GEICO (insurance), BNSF Railway, and a vast collection of manufacturing, service, and retail businesses like Dairy Queen and Duracell.
Publicly Traded Stock Portfolio: This is the part that gets a lot of attention. Berkshire owns significant stakes in companies like Apple, Bank of America, Coca-Cola, and American Express.
You're essentially investing in a highly diversified portfolio managed by one of the most successful investment teams in history.
Analyze Key Financials
While you're not a professional analyst, looking at a few key metrics can give you a better sense of the company's health. You can find this information in the "Financials" or "Company Profile" section of your brokerage platform.
Revenue and Net Income: Do these numbers show consistent growth?
Earnings Per Share (EPS): This tells you how much of the company's profit is allocated to each outstanding share.
Price-to-Earnings (P/E) Ratio: This is a valuation metric that compares the stock price to its earnings.
It's also worth noting a key characteristic of Berkshire Hathaway: it has never paid a dividend and likely never will while Warren Buffett is at the helm. Instead of paying out profits to shareholders, Buffett and his team prefer to reinvest that capital back into the business or acquire new companies, believing they can generate greater returns for shareholders in the long run. This is a crucial detail to understand if you are looking for dividend income.
Step 4: Decide How Much to Invest and Place Your Order
Once you feel confident in your research and your decision to invest, it's time to place the order.
Consider Fractional Shares
A single share of BRK.B is currently priced around $485 (as of June 27, 2025). If this is still more than you want to invest, many brokerages now offer fractional shares. This allows you to buy a portion of a share, based on a dollar amount.
For example, if you only have $100 to invest, you can buy approximately 0.20 shares of BRK.B. This is a game-changer for new investors!
QuickTip: Revisit posts more than once.
Choose Your Order Type
When you go to buy, you'll need to select an order type. The two most common are:
Market Order: This is the simplest option. You place the order, and it executes immediately at the best available market price. The price you see might be slightly different from the final price you pay due to rapid price fluctuations. This is best for liquid, stable stocks like BRK.B where small price differences don't matter as much for a long-term investor.
Limit Order: This gives you more control. You set a specific maximum price you are willing to pay per share. Your order will only execute if the stock's price drops to that level or lower. This is useful if you want to buy at a specific price point and are willing to wait for it.
For a long-term investment in a company like Berkshire Hathaway, a market order is often sufficient, but a limit order can be a good tool if you want to buy at a specific entry point.
Step 5: Execute the Trade and Monitor Your Investment
Once you've entered the number of shares or the dollar amount and selected your order type, simply click the "Buy," "Submit," or "Place Trade" button. Within moments, you will become a proud shareholder of Berkshire Hathaway!
Remember that investing in Berkshire Hathaway is often seen as a long-term strategy. It's not the kind of stock you buy and sell every day. The company's value is built over decades. You should monitor your investment periodically, but avoid the temptation to check the price every hour. Focus on the long-term growth of the underlying businesses.
BRK.A vs. BRK.B: A Quick Breakdown
It's crucial to understand the difference between the two share classes.
Feature | Berkshire Hathaway Class A (BRK.A) | Berkshire Hathaway Class B (BRK.B) |
Price | Extremely Expensive (over $800,000 per share) | Affordable (around $485 per share) |
Voting Rights | Full voting rights (1 vote per share) | Limited voting rights (1/10,000th of a Class A share) |
Convertibility Tip: Don’t skip the small notes — they often matter. | Can be converted into 1,500 Class B shares | Cannot be converted into Class A shares |
Accessibility | Largely inaccessible to individual investors | Created specifically for retail investors |
Ticker | BRK.A | BRK.B |
The shares represent equivalent ownership in the same company's assets and earnings, so their performance is closely tied. The Class B shares were created to make Berkshire accessible to a wider audience, and they have been a great success in doing so.
10 FAQs about Buying BRK.B Stock
How to buy BRK.B with a small amount of money?
You can buy fractional shares of BRK.B through many modern brokerage platforms. This allows you to invest a specific dollar amount (e.g., $50 or $100) and own a portion of a share.
How to find the ticker symbol for Berkshire Hathaway Class B?
The official ticker symbol for Berkshire Hathaway Class B stock on the New York Stock Exchange (NYSE) is BRK.B.
How to know if BRK.B is a good investment for me?
This depends on your personal financial goals and risk tolerance. BRK.B is generally considered a strong, long-term, stable investment due to its diversification and management. However, you should always do your own research and consider consulting a financial advisor.
Reminder: Reading twice often makes things clearer.
How to buy Berkshire Hathaway stock directly from the company?
You cannot buy Berkshire Hathaway stock directly from the company. You must use a licensed brokerage firm to purchase shares on the stock market.
How to get dividends from BRK.B stock?
Berkshire Hathaway does not pay dividends on either its Class A or Class B shares. Instead, the company reinvests its earnings back into its businesses and stock portfolio.
How to choose the best brokerage for buying BRK.B?
Look for a brokerage that offers zero-commission trading, is well-regulated, has a user-friendly platform, and provides access to fractional shares if you need them.
How to convert my BRK.B shares to BRK.A?
You cannot convert Class B shares into Class A shares. The conversion is only one-way, from Class A to Class B.
How to find the current price of BRK.B stock?
You can find the real-time price on financial news websites (like Google Finance or Yahoo Finance), your brokerage's platform, or by simply searching for "BRK.B stock price" online.
How to research the underlying companies within Berkshire Hathaway?
You can access Berkshire Hathaway’s annual reports and quarterly filings on their official investor relations website. These documents provide a detailed breakdown of their owned businesses and stock portfolio.
How to buy Berkshire Hathaway Class A stock?
The process is the same as buying Class B stock—you use a brokerage account and the ticker symbol BRK.A. However, be prepared for a share price that is hundreds of thousands of dollars.
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