Are you ready to dive into the fascinating world of one of the most unique and iconic stocks on the market? Let's unravel the history of Berkshire Hathaway's stock splits, or more accurately, the lack thereof.
The Berkshire Hathaway Stock Split Story: A Tale of Two Classes
When you hear about Berkshire Hathaway stock, you're not just hearing about one stock. You're hearing about two distinct classes of shares, each with its own story regarding stock splits. The legendary Warren Buffett, the company's CEO, has maintained a very specific philosophy that has shaped the trajectory of both the Class A and Class B shares.
Let's break it down, step by step.
Step 1: Get to Know the Two Share Classes
Before we can talk about stock splits, we need to understand what we're dealing with. Berkshire Hathaway has two classes of common stock:
Class A shares (BRK.A): These are the original, highly-priced shares that have become a symbol of Warren Buffett's buy-and-hold philosophy. They hold a significant amount of voting power. As of June 2025, a single share of BRK.A trades for hundreds of thousands of dollars, making it the most expensive stock in the world.
Class B shares (BRK.B): Introduced in 1996, these shares were created to provide a more accessible entry point for retail investors who couldn't afford the sky-high price of a Class A share. They have a lower price and a fraction of the voting rights of Class A shares.
So, which one are you interested in? The ultra-exclusive Class A or the more accessible Class B? Knowing the difference is the first and most crucial step in understanding the stock split history.
Step 2: The Class A Shares (BRK.A) - The Unsplit Legend
Now, for the big reveal. How many times has Berkshire Hathaway's Class A stock split? The answer is simple and definitive:
Zero times.
That's right. BRK.A has never had a stock split.
Warren Buffett's Philosophy
This isn't an accident. It's a deliberate strategy championed by Warren Buffett for decades. He believes that a high stock price helps to attract a specific type of investor – one who is focused on the long-term intrinsic value of the company, not on short-term speculation or trading. By keeping the price per share incredibly high, he effectively discourages day traders and those looking for quick profits. He wants shareholders who are aligned with his long-term, value-investing philosophy.
The high price acts as a filter, weeding out short-term oriented investors and fostering a shareholder base of committed, long-term partners. This approach has been a cornerstone of Berkshire Hathaway's corporate culture and a key to its incredible success.
Step 3: The Class B Shares (BRK.B) - The Accessible Option
Unlike its Class A counterpart, the Class B stock has a different story to tell.
The First and Only Stock Split
Berkshire Hathaway's Class B shares have split one time.
This single, yet significant, event occurred on January 21, 2010. The split was a 50-for-1 forward split.
The Reason Behind the Split
Why did Berkshire Hathaway, under the leadership of a CEO who is famously against stock splits, decide to split the Class B shares? The reason was a major acquisition. In 2009, Berkshire Hathaway announced its acquisition of the Burlington Northern Santa Fe (BNSF) railroad. To facilitate this massive deal, which involved a mix of cash and stock, Berkshire needed to make its stock more attractive to the BNSF shareholders. A lower price per share would make it easier to complete the transaction and would provide an alternative to cash.
The 50-for-1 split brought the price of the Class B shares down from around $3,500 to roughly $70 per share, making it much more liquid and appealing for the acquisition. This split was a pragmatic business decision, not a philosophical shift. It was a one-time move to achieve a strategic goal.
A Quick Recap of the Splits
To summarize the journey:
Class A (BRK.A): 0 splits. Never has, likely never will.
Class B (BRK.B): 1 split. A 50-for-1 split on January 21, 2010.
It's important to remember that a stock split doesn't change the fundamental value of your investment. It's like cutting a pizza into more slices. You have more slices, but the total amount of pizza remains the same. After the split, a BRK.B shareholder owned 50 shares for every one they had before, and the total value of their holdings remained the same.
10 Related FAQ Questions
Here are some frequently asked questions about Berkshire Hathaway's stock splits and shares:
How to understand the two classes of Berkshire Hathaway stock? You can understand them as two separate types of ownership in the same company. Class A is for those with significant capital and a desire for more voting power, while Class B is for individual investors who want a more affordable entry point into the company.
How to buy Berkshire Hathaway Class B shares? You can buy BRK.B shares through any standard brokerage account. Many brokers even allow for fractional share purchases, making it even more accessible.
How to convert Berkshire Hathaway Class A shares to Class B shares? Each Class A share is convertible into 1,500 Class B shares at any time. This conversion can be done through your brokerage. However, you cannot convert Class B shares into Class A shares.
How to calculate the value of Class A shares relative to Class B? Currently, one Class A share is equal to 1,500 Class B shares in terms of economic value. This ratio was established after the 2010 split.
How to know if a stock split is coming for BRK.A? Based on Warren Buffett's long-standing philosophy and public statements, it is highly unlikely that the Class A shares will ever split. His successor is also expected to maintain this corporate culture.
How to explain why BRK.A has such a high price? The high price is a direct result of the company's incredible long-term growth and its deliberate decision to never split the stock, which has allowed the price per share to grow without interruption.
How to view the 2010 Class B split as a positive or negative event? From a business standpoint, it was a positive move that facilitated a major acquisition. For investors, it made the stock more accessible and liquid without changing the underlying value of their holdings.
How to trade Berkshire Hathaway stock after a split? After a stock split, trading works the same way. You simply have more shares at a lower price. Your broker will handle the adjustments to your account automatically.
How to find the price history of BRK.B before the split? You can find historical stock data on various financial websites and platforms. Remember to look for pre-split data to see the price before the 50-for-1 adjustment.
How to invest in Berkshire Hathaway without buying a full share? Many modern brokerages offer fractional share investing, which allows you to buy a specific dollar amount of a stock, even if it's not a full share. This is an excellent way to invest in BRK.A or any other high-priced stock.