Here is a comprehensive guide on understanding the outstanding shares of Berkshire Hathaway, with a step-by-step process and answers to frequently asked questions.
How many outstanding shares of Berkshire Hathaway are there? A Step-by-Step Guide to Finding the Answer
Have you ever wondered about the true ownership of a massive conglomerate like Berkshire Hathaway? It's a question that can lead you down a fascinating rabbit hole of financial data, corporate structure, and the legendary investment philosophy of Warren Buffett. Let's embark on this journey together to find out exactly how many outstanding shares of Berkshire Hathaway there are.
Step 1: Understand What "Outstanding Shares" Means
Before we dive into the numbers, let's make sure we're on the same page. When we talk about a company's "outstanding shares," we are referring to the total number of shares that have been issued by the company and are currently held by all shareholders. This includes shares held by institutional investors, company insiders, and the general public.
Think of it like this: Imagine a company bakes a giant cake and cuts it into a specific number of slices. The total number of slices available to be eaten (or owned) is the number of outstanding shares. This number can change over time through actions like stock buybacks or new share issuances.
Tip: Train your eye to catch repeated ideas.
Ready to find out about Berkshire Hathaway's "slices of the cake"? Let's move on.
Step 2: Differentiate Between Berkshire's Two Classes of Stock
This is a crucial point when it comes to Berkshire Hathaway. Unlike many companies, Berkshire has two distinct classes of common stock:
Class A (BRK.A): These are the original, highly-priced shares. They have full voting rights, with each share representing one vote. Due to their incredibly high price, they are not easily accessible to the average retail investor.
Class B (BRK.B): These were created in 1996 to make Berkshire's stock more accessible. They are much cheaper and carry a fraction of the voting rights of the Class A shares (typically 1/10,000th of a vote per share).
The number of outstanding shares you are looking for is the sum of both Class A and Class B shares. You can't just look at one and ignore the other.
Step 3: Locate the Most Up-to-Date Information
Tip: Slow down when you hit important details.
To find the precise number of outstanding shares, you need to look at the company's official financial filings. This is the most reliable source of information.
Annual and Quarterly Reports (10-K and 10-Q): Berkshire Hathaway, like all publicly traded companies in the United States, files these reports with the U.S. Securities and Exchange Commission (SEC). The number of outstanding shares is typically disclosed in the company's balance sheet or the notes to the financial statements.
Investor Relations Website: Visit the official Berkshire Hathaway investor relations website. They often have their annual reports and quarterly filings readily available in a dedicated section.
Step 4: Analyze the Data from Recent Filings
Based on the most recent publicly available data, here is a breakdown:
As of March 31, 2025, Berkshire Hathaway had approximately 2.159 billion shares outstanding.
The total number of shares is a combination of Class A and Class B shares.
This number has been decreasing over time due to the company's aggressive share buyback program, which we'll discuss next.
This is a key piece of information for any investor. It's not just a static number; it tells a story about the company's capital allocation strategy.
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Step 5: Understand the Impact of Share Buybacks
QuickTip: Pause when something clicks.
Under the leadership of Warren Buffett and the late Charlie Munger, Berkshire Hathaway has a well-known policy of repurchasing its own stock. This is a crucial factor influencing the number of outstanding shares.
What is a share buyback? A company buys its own shares back from the open market. These repurchased shares are then either retired or held as "treasury shares."
Why do they do it? When the number of outstanding shares decreases, the ownership stake of the remaining shareholders increases. This can lead to an increase in key per-share metrics like Earnings Per Share (EPS), as the same total earnings are now divided among a smaller number of shares. Warren Buffett has consistently stated that he will only buy back shares when they are trading at a price he considers to be below their intrinsic value.
From July 2018 to June 2024, Warren Buffett spent close to $78 billion repurchasing his company's stock, demonstrating a strong conviction in its value. This has significantly reduced the outstanding share count over the years.
Step 6: Calculate Key Metrics Using the Outstanding Share Count
Once you have the number of outstanding shares, you can use it to calculate important financial metrics that help you evaluate the company's performance.
Market Capitalization: This is the total value of the company's outstanding shares. You calculate it by multiplying the outstanding share count by the current market price per share.
Formula: Market Capitalization = Outstanding Shares × Current Share Price
Earnings Per Share (EPS): This metric shows the portion of a company's profit allocated to each outstanding share of common stock.
Formula: EPS = Net Income / Outstanding Shares
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| How Many Outstanding Shares Of Berkshire Hathaway Are There |
Frequently Asked Questions (FAQs)
Tip: Break it down — section by section.
1. How to find the exact number of outstanding shares for Berkshire Hathaway? You can find the exact number of outstanding shares in Berkshire Hathaway's latest Form 10-Q (quarterly report) or Form 10-K (annual report) filed with the SEC. Look for the "Shares Outstanding" figure on the balance sheet or in the notes to the financial statements.
2. How to interpret a decrease in Berkshire Hathaway's outstanding shares? A decrease in outstanding shares, especially through share buybacks, is generally seen as a positive sign. It indicates that management believes the stock is undervalued and is using capital to return value to shareholders, increasing their ownership stake in the company's assets and earnings.
3. How to buy Berkshire Hathaway stock (BRK.A or BRK.B)? To buy Berkshire Hathaway stock, you need a brokerage account. You can then search for the ticker symbol "BRK.B" (for Class B shares) and place a market or limit order. For BRK.A, be prepared for a very high share price. Many brokerages also offer fractional shares, allowing you to invest a specific dollar amount rather than buying a full share.
4. How to understand the difference between Class A and Class B shares? The main differences are price, voting rights, and convertibility. Class A (BRK.A) is expensive with full voting rights, while Class B (BRK.B) is much cheaper with a fraction of the voting rights. Class A shares can be converted to Class B, but not the other way around.
5. How to track Berkshire Hathaway's share buyback activity? The company's share buyback activity is reported in its quarterly and annual financial reports (10-Q and 10-K). You can find the total amount of shares repurchased and the cost in the "Statement of Cash Flows" or the "Shareholder's Equity" section of the reports.
6. How to calculate Berkshire Hathaway's market capitalization? Multiply the total number of outstanding shares (both Class A and Class B) by the current market price of the respective share class. The market capitalization is the sum of the market cap of both classes.
7. How to find historical outstanding share data for Berkshire Hathaway? You can find historical data in the company's past annual reports (10-K filings) on the SEC's EDGAR database or on financial data websites that provide historical financial statements.
8. How to get a breakdown of Class A vs. Class B outstanding shares? The company's financial filings will provide a breakdown of the outstanding shares for each class. You can find this information in the shareholder's equity section of the balance sheet.
9. How does the number of outstanding shares affect Berkshire Hathaway's EPS? When the company buys back shares, the number of outstanding shares decreases. This means that if the company's net income stays the same or increases, the earnings per share (EPS) will automatically increase, which is a positive for investors.
10. How is Berkshire Hathaway's outstanding share count related to its intrinsic value? Warren Buffett buys back shares when he believes the market price is below the company's intrinsic value. Therefore, the outstanding share count is a reflection of management's view on the company's valuation, as they are actively reducing the share count to increase the value for remaining shareholders.
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