Here is a very lengthy, step-by-step guide on how to invest in Berkshire Hathaway from Australia.
How to Invest in Berkshire Hathaway from Australia: A Comprehensive Guide
So, you're an Aussie investor keen to get a piece of the action in Warren Buffett's legendary investment conglomerate, Berkshire Hathaway? Excellent choice! You're looking to join a global community of investors who believe in the long-term, value-driven approach of the "Oracle of Omaha." While you can't just buy the shares on the ASX, it's absolutely possible to invest from Australia.
Let's dive into a step-by-step guide that will take you from a curious Aussie to a proud Berkshire Hathaway shareholder.
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| How To Invest In Berkshire Hathaway In Australia |
Step 1: Understand the Two Share Classes – A Tale of Two Tickers
Before you do anything else, you need to understand that Berkshire Hathaway has two different classes of stock: Class A (BRK.A) and Class B (BRK.B). This is a crucial distinction, and your choice will largely depend on your investment budget.
Berkshire Hathaway Class A (BRK.A): The Gold Standard. This is the original stock, and it's famous for its astronomical price. As of late June 2025, one share of BRK.A is priced at over US$700,000. It has never had a stock split, a decision made by Warren Buffett to attract long-term investors. Each Class A share has a significant voting right. For the vast majority of retail investors, this is simply not a practical option.
Berkshire Hathaway Class B (BRK.B): The Accessible Option. To make the company accessible to a wider range of investors, Berkshire Hathaway introduced Class B shares in 1996. These shares are priced at a fraction of the cost of Class A shares (as of late June 2025, around US$485). While they have a lower price and a correspondingly lower voting right (1/10,000th of a Class A share), they represent the same economic interest in the company. This is the share class you will almost certainly be investing in.
So, which one are you looking at? If you're a retail investor, the answer is almost certainly BRK.B. It allows you to invest with a much smaller amount of capital and still get exposure to the company's performance.
Step 2: Choose Your Weapon – Selecting a Brokerage Platform
Tip: Don’t just scroll — pause and absorb.
To buy US-listed shares from Australia, you can't just use your regular bank account. You need a brokerage platform that provides access to international markets, specifically the New York Stock Exchange (NYSE), where Berkshire Hathaway is listed.
Here's what to look for when choosing a broker:
International Market Access: Ensure the broker offers trading on the NYSE.
Fees and Brokerage: Look for transparent and competitive fees. This includes brokerage fees per trade, currency conversion fees (FX fees), and any ongoing account fees. Some platforms offer low or even zero brokerage fees on US stocks, but may charge higher FX fees.
Fractional Shares: This is a game-changer for expensive stocks like BRK.B. A broker that offers fractional shares allows you to buy a portion of a share, even if you can't afford a full one. For example, you could invest $100 and buy 0.2 of a BRK.B share. This is a fantastic way to start small.
User-Friendly Platform: Is the platform easy to navigate? Does it offer good research tools and real-time market data?
Tax Reporting: Does the broker provide helpful tax reports to make your life easier at tax time?
Sub-heading: Popular Brokers for Australians
Some popular brokerage platforms in Australia that offer access to US stocks include:
Interactive Brokers (IBKR): Known for low fees and a wide range of markets and products. It's often favoured by more experienced traders.
Stake: A popular platform known for its simple user interface and US30,000. They also offer fractional shares.
Selfwealth: An Australian broker that offers flat-fee brokerage for both Australian and US shares.
CommSec International: The international arm of CommSec, offering access to US markets. It's a reliable option, but may have higher brokerage fees compared to some of the newer, low-cost brokers.
Once you've chosen a broker, you'll need to open an account. This typically involves providing your personal details, proof of identity, and proof of address. The process is usually straightforward and can be completed online.
Step 3: Fund Your Account and Convert Your Currency
Now that your brokerage account is set up, it's time to add money.
Deposit Australian Dollars (AUD): You will need to transfer AUD from your Australian bank account to your brokerage account. Most platforms offer a variety of funding methods, including bank transfers (EFT), PayID, and sometimes credit/debit card.
Convert AUD to US Dollars (USD): Since Berkshire Hathaway is listed in the US, you will need to hold US dollars in your brokerage account to buy the shares. Your broker will facilitate this currency conversion. Be mindful of the foreign exchange (FX) fee, which can be a small percentage of the converted amount. It's important to understand this cost as it can impact your overall returns.
Sub-heading: Understanding the FX Spread
The FX spread is the difference between the buy and sell price of a currency. Some brokers offer a competitive "mid-market" rate, while others have a higher spread. This is a hidden fee that can add up, so pay close attention to it when choosing your broker.
QuickTip: Stop scrolling fast, start reading slow.
Step 4: Navigate the Platform and Place Your Order
With funds in your account, you are ready to buy!
Search for the Ticker: In your brokerage platform's search bar, type in the ticker symbol for Berkshire Hathaway Class B shares: BRK.B.
Review the Information: The platform will show you the current share price, market data, and company information. Take a moment to review this.
Decide on Your Order Type: You'll typically have two main options:
Market Order: This is the simplest option. You place an order to buy at the best available current market price. Your order will be executed immediately.
Limit Order: This gives you more control. You set a specific price you are willing to pay for the shares. If the share price drops to or below your limit price, your order will be executed. This is a good option if you want to buy at a specific price and aren't in a rush.
Enter the Quantity: Enter the number of shares you want to buy (or the dollar amount if you are buying fractional shares).
Confirm and Place the Order: Double-check all the details of your order – the ticker, the quantity, and the order type. Once you're happy, click "buy" or "place trade."
Congratulations! You are now a shareholder of Berkshire Hathaway.
Step 5: Consider the Tax Implications in Australia
As an Australian resident, you are required to declare any income and capital gains from your international investments to the Australian Taxation Office (ATO).
Dividends: While Berkshire Hathaway does not pay a dividend, it's important to understand the process for other US stocks. The US will withhold a certain percentage of tax on dividends paid to foreign investors (typically 30%). However, due to the tax treaty between Australia and the US, this is often reduced to 15% if you have completed the correct tax form (a W-8BEN form, which your broker will help you with). You can then claim a foreign income tax offset in your Australian tax return for the tax already paid in the US.
Capital Gains: When you eventually sell your shares and make a profit, this is considered a capital gain. You will need to declare this in your Australian tax return. If you hold the shares for more than 12 months, you are eligible for the 50% CGT discount, where you only pay tax on 50% of the gain.
It is highly recommended to consult with a qualified tax professional or financial advisor to understand your specific tax obligations.
10 Related FAQ Questions
Tip: Revisit challenging parts.
Here are some quick answers to common questions about investing in Berkshire Hathaway from Australia.
How to choose between Class A and Class B shares?
Choose Class B (BRK.B) unless you have a multi-million dollar budget and a specific reason for wanting the voting rights of Class A (BRK.A). BRK.B is the practical and accessible option for most retail investors.
How to find a reliable broker for US stocks in Australia?
Look for a broker that is regulated in Australia (ASIC regulated) or a reputable international broker that serves Australian clients. Compare their fees, market access, and features like fractional shares.
How to deal with currency conversion when investing?
Your broker will handle the currency conversion for you, but be aware of the foreign exchange (FX) fees or spreads they charge. This is a cost you should factor in.
How to know if I should buy a full share or a fractional share?
If your budget is less than the current share price of BRK.B, you should look for a broker that offers fractional shares. This allows you to invest with a smaller amount of money.
How to complete the W-8BEN form?
QuickTip: Pause when something clicks.
Most reputable brokers will provide you with a digital W-8BEN form to complete when you open your account. This is a simple process that certifies you are not a US resident for tax purposes and allows you to benefit from the reduced withholding tax rate on dividends.
How to calculate my capital gains tax in Australia?
Your capital gain is the difference between your sale price and your purchase price (minus any costs). If you hold the shares for more than 12 months, you can apply the 50% CGT discount to the gain.
How to know if the share price is a good value?
While this is not financial advice, you should do your own research. A common approach is to look at the company's fundamentals, like its earnings, revenue, and book value. Consider reading Warren Buffett's annual letters to shareholders for insight into the company's philosophy.
How to sell my Berkshire Hathaway shares?
The process is the reverse of buying. You log into your brokerage account, find your holdings, and place a "sell" order (either a market or limit order) for the number of shares you want to sell.
How to monitor my investment's performance?
Your brokerage platform will provide a portfolio view, showing your holdings, current value, and performance. You can also use financial websites and apps to track the BRK.B stock price in real-time.
How to reinvest my profits?
Since Berkshire Hathaway does not pay a dividend, any profits you make will come from capital gains when you sell. You can then use those proceeds to reinvest in other stocks or assets through your brokerage account.
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