How to Make Money with Berkshire Hathaway: A Comprehensive Guide to Investing in the Oracle of Omaha's Empire
Hello and welcome, future investor! Have you ever wondered what it takes to invest alongside one of the greatest investors of all time, Warren Buffett? The name "Berkshire Hathaway" conjures images of immense wealth, long-term thinking, and a legendary track record. But how do you, as an individual investor, tap into this powerful engine of wealth creation?
This isn't a get-rich-quick scheme. Investing in Berkshire Hathaway is a marathon, not a sprint. It’s about aligning your financial future with a company built on a foundation of value, discipline, and a deep understanding of business. So, are you ready to learn? Let's dive in.
Step 1: Understand What You're Investing In - More Than Just a Stock
Before you even think about buying a single share, you need to grasp a fundamental concept: Berkshire Hathaway is not a typical company. It's a massive, diversified holding company. Think of it as a conglomerate with two main engines of profit:
A portfolio of wholly-owned businesses: These are companies that Berkshire Hathaway owns outright. This includes giants like GEICO (insurance), BNSF Railway (transportation), and Dairy Queen (retail), among many others. These businesses generate significant cash flow for the company.
A vast equity portfolio: This is what most people think of when they hear "Berkshire Hathaway." It's the portfolio of publicly traded stocks that Warren Buffett and his team have selected. This includes major stakes in iconic American companies like Apple, Coca-Cola, and Bank of America.
So, when you buy a share of Berkshire Hathaway, you're not just buying a piece of one company; you're buying a tiny slice of an entire diversified empire, managed by a team with a proven track record of finding undervalued businesses and holding them for the long term. This is the core of the value proposition.
Step 2: Choose Your Entry Point - Class A vs. Class B Shares
This is a crucial decision that will determine your accessibility and investment strategy. Berkshire Hathaway offers two classes of stock: Class A (BRK.A) and Class B (BRK.B).
Sub-heading: The Legendary Class A Shares (BRK.A)
The Class A shares are the original stock and are famously expensive. As of June 2025, a single share is trading for hundreds of thousands of dollars. The price tag is so high by design. Warren Buffett believes this high price helps attract serious, long-term investors who aren't interested in short-term trading.
QuickTip: A quick skim can reveal the main idea fast.
Price: Extremely high, putting them out of reach for most retail investors.
Voting Rights: Each share has one vote.
Convertibility: Can be converted into 1,500 Class B shares.
Sub-heading: The Accessible Class B Shares (BRK.B)
Introduced in 1996, the Class B shares were created to make Berkshire Hathaway accessible to a wider range of investors. These are what most people will buy. The price is a tiny fraction of the Class A shares.
Price: Much more affordable, typically in the hundreds of dollars.
Voting Rights: Each share has 1/10,000th of a vote of a Class A share.
Convertibility: Cannot be converted back to Class A shares.
Important Note: While the Class B shares have fewer voting rights, their investment performance is tied directly to the Class A shares. When the company's value increases, both share classes benefit proportionally. For the average investor, the Class B shares offer all the financial benefits of owning a piece of Berkshire Hathaway without the astronomical price tag.
Step 3: Open and Fund a Brokerage Account
You can't buy Berkshire Hathaway shares directly from the company. You need a brokerage account. If you don't have one, this is your first concrete step.
Choose a reputable online brokerage: Look for one with low fees, a user-friendly platform, and a good reputation. Examples include Zerodha, Groww, or Upstox in India, or Fidelity, Charles Schwab, or Robinhood in the US.
Open the account: You'll need to provide personal information, including your PAN card, Aadhaar card, and bank details, to complete the KYC (Know Your Customer) process.
Fund the account: Link your bank account and transfer funds to your brokerage account. This money will be used to purchase the shares.
Step 4: Execute Your Trade - Buying BRK.B Shares
Now for the exciting part!
Log in to your brokerage account.
Search for the ticker symbol: Use the ticker "BRK.B" in the search bar.
Decide how much to invest: You can buy a whole share or, at many brokerages, buy fractional shares (a portion of a share) if you don't have enough to buy a full one. This is a great option for smaller investments.
Place your order:
Market Order: This executes your trade immediately at the current market price. It's simple and quick.
Limit Order: This allows you to set a maximum price you're willing to pay. The order will only execute if the stock's price drops to your specified limit. This gives you more control over the price you pay. For a long-term investment like this, a limit order can be a smart move if you want to be patient and buy at a specific price.
Review and submit: Double-check all the details before you click "buy."
Congratulations! You are now a part-owner of the company led by Warren Buffett.
QuickTip: Read line by line if it’s complex.
Step 5: The "Holding" Strategy - A Key to Success
This is arguably the most important step and the one that separates a Buffett-style investor from a speculator. Once you own the shares, you must embrace the long-term holding philosophy.
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Don't check the price daily: The stock market is volatile. Daily fluctuations are normal. Focus on the long-term growth of the businesses Berkshire Hathaway owns.
Focus on the business, not the stock: Buffett famously says he invests as if he were buying the entire business, not just a stock. Read the annual shareholder letters and follow the company's acquisitions and performance.
Ignore the noise: Media headlines, market downturns, and short-term trends can be distracting. Remember that Buffett has built his fortune by staying the course through all kinds of economic conditions.
Reinvest: While Berkshire Hathaway does not pay dividends (more on that in the FAQ), the company reinvests all its earnings back into its businesses and new acquisitions. This allows for the power of compounding to work its magic over decades.
Your primary way of making money with Berkshire Hathaway is through capital appreciation—the increase in the value of your shares over time. The company's value grows as its underlying businesses perform well and new, profitable acquisitions are made.
Step 6: Diversify and Stay Disciplined
While Berkshire Hathaway provides diversification within its own portfolio, it should not be your only investment.
Maintain a balanced portfolio: Include other investments like index funds (e.g., Nifty 50 or S&P 500 index funds), debt instruments, and other asset classes that align with your financial goals and risk tolerance.
Regularly review your portfolio: Once or twice a year, assess your portfolio's performance and rebalance if necessary to stay on track with your long-term goals.
Be patient: As mentioned earlier, compounding takes time. A consistent, disciplined approach over 10, 20, or even 30 years is how true wealth is built.
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| How Do You Make Money With Berkshire Hathaway |
Related FAQ Questions
Here are 10 frequently asked questions about making money with Berkshire Hathaway, with quick answers to get you started.
How to buy Berkshire Hathaway Class A shares?
You can buy Class A shares (BRK.A) through a brokerage account, just like Class B. However, due to their extremely high price, they are impractical for most retail investors.
Tip: Don’t skip the small notes — they often matter.
How to make money from Berkshire Hathaway without buying the stock?
You can't directly make money from the company's performance without owning a piece of it. However, you can invest in ETFs or mutual funds that have Berkshire Hathaway in their holdings, gaining indirect exposure.
How to find the intrinsic value of Berkshire Hathaway?
Determining the precise intrinsic value is complex and involves analyzing the company's cash flow, earnings of its subsidiaries, and the value of its equity portfolio. It is a calculation best left to expert analysts. For a beginner, the key is to trust in the long-term management and track record of the company.
How to get dividends from Berkshire Hathaway?
You can't. Berkshire Hathaway famously does not pay a dividend. Warren Buffett believes that the company can generate a better return for shareholders by reinvesting all its earnings back into the businesses and new acquisitions.
How to know when to sell Berkshire Hathaway stock?
Warren Buffett's philosophy is to "buy and hold forever." The best reason to sell would be if your financial circumstances change and you need the capital, or if you believe the company's fundamentals have changed for the worse (which is a rare event for Berkshire Hathaway).
QuickTip: Slowing down makes content clearer.
How to calculate your returns from Berkshire Hathaway?
Your returns will primarily come from the increase in the share price. You can calculate your return on investment (ROI) using the formula:
How to track Berkshire Hathaway's portfolio?
You can follow the company's major holdings by looking at their quarterly 13F filings with the SEC (Securities and Exchange Commission), which list their equity holdings. Many financial news websites summarize these filings.
How to invest in Berkshire Hathaway with a small amount of money?
The most practical way is to buy Class B shares (BRK.B). Many online brokerages also allow you to buy fractional shares, meaning you can invest as little as a few dollars to own a small portion of a share.
How to compare Berkshire Hathaway's performance to the market?
You can compare the performance of BRK.B to a broad market index like the S&P 500. Historically, over the very long term, Berkshire Hathaway has significantly outperformed the market, demonstrating the success of Buffett's investment philosophy.
How to learn more about Warren Buffett's investment philosophy?
Read his annual shareholder letters to Berkshire Hathaway's investors. They are a treasure trove of wisdom and are available for free on the company's website. They are not just financial reports; they are engaging lessons in business and investing.
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