Here is a comprehensive, step-by-step guide on how to buy Berkshire Hathaway stock.
A Comprehensive Guide: How to Buy Berkshire Hathaway Stock and Invest Alongside Warren Buffett
Hello there! Have you ever wanted to invest in a company with a legendary track record and a portfolio of iconic businesses? Do you want to own a piece of the empire built by one of the greatest investors of all time, Warren Buffett? If your answer is yes, then you've come to the right place!
Berkshire Hathaway (BRK.A, BRK.B) is not your average company. It's a massive conglomerate that owns a diverse range of businesses, from insurance giants like GEICO to railroads like BNSF, and even well-known consumer brands like Dairy Queen. In addition, it holds a substantial portfolio of stocks in other publicly traded companies, including Apple, Coca-Cola, and American Express. Investing in Berkshire Hathaway is like buying a pre-made, diversified fund, managed by a team with an unparalleled investment philosophy.
So, let's dive into the process and learn how you can become a Berkshire Hathaway shareholder.
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| How Berkshire Hathaway Stock |
Step 1: Understand the Two Classes of Berkshire Hathaway Stock
QuickTip: Use the post as a quick reference later.
Before you do anything else, you need to understand that Berkshire Hathaway has two classes of common stock: Class A (BRK.A) and Class B (BRK.B). This is a crucial first step.
Class A (BRK.A): The Original and Expensive Share
This is the original stock class, and its price is famously high. As of June 2025, a single share of BRK.A costs over $500,000. It's the most expensive stock in the world, and for most individual investors, it is simply out of reach. These shares have 10,000 times the voting rights of Class B shares and can be converted into Class B shares. However, Class B shares cannot be converted into Class A shares.
Class B (BRK.B): The Accessible Share for Everyone Else
This is the stock that most investors will buy. Introduced in 1996, Class B shares were created to make investing in Berkshire Hathaway accessible to a wider audience. They trade at a significantly lower price, making them a practical option for the average investor. While a Class B share has 1/1,500th of the economic interest of a Class A share, it has only 1/10,000th of the voting rights. Don't worry, for most investors, the difference in voting rights is not a concern, and the Class B shares offer the same exposure to the company's performance.
So, for this guide, we will focus on buying the more accessible Class B stock (BRK.B).
Step 2: Open and Fund a Brokerage Account
You cannot buy Berkshire Hathaway stock directly from the company. You'll need a brokerage account, which is an investment account that allows you to buy and sell stocks, bonds, and other securities. If you don't have one already, don't worry, opening one is a straightforward process.
Choose a Brokerage: Select a brokerage firm that suits your needs. Look for one with low fees, a user-friendly platform, and access to US stocks listed on the New York Stock Exchange (NYSE). Popular options in India that offer international trading include ICICI Direct, Kotak Securities, Motilal Oswal, and platforms like INDmoney. Many brokers now offer commission-free trading, which is a great bonus.
Open an Account: The process is typically done online. You will need to provide your personal details, such as your name, address, and a valid ID (like a PAN card or Aadhaar card). You'll also need to complete the Know Your Customer (KYC) process.
Complete a W-8BEN Form: If you're an Indian resident investing in US stocks, you will likely need to fill out a W-8BEN form. This is a standard US tax form that helps you claim a reduced withholding tax rate on dividends from US companies. Although Berkshire Hathaway doesn't pay dividends, it's a necessary formality for US stock investments. Your brokerage platform will guide you through this.
Fund Your Account: Once your account is set up, you need to deposit money. You will be transferring Indian Rupees (INR), and the brokerage will convert it to US Dollars (USD) to facilitate the purchase of US stocks. Be mindful of currency conversion fees and exchange rates.
Step 3: Research and Decide How Much to Invest
QuickTip: Note key words you want to remember.
Before you place your order, it's wise to do a bit of homework. While you're investing in a well-managed company, it's always important to understand what you're buying.
Research Berkshire Hathaway: Read their annual reports and quarterly filings (Form 10-K and 10-Q). This will give you insight into the company's financial health, its various business segments, and the risks it faces. You'll find this information on the company's official investor relations website.
Analyze Your Own Finances: Determine how much you can comfortably invest. A general rule of thumb is to only invest money that you won't need for at least 3 to 5 years. This allows your investment to ride out any short-term market fluctuations.
Consider Fractional Shares: If the price of one share of BRK.B is still too high for your budget, check if your brokerage offers fractional shares. Many modern brokerages allow you to buy a fraction of a share based on a specific dollar amount you want to invest. For example, if you have $100 to invest, you can buy a quarter of a share instead of a whole one. This is a game-changer for new investors.
Step 4: Place Your Order
This is the exciting part! You're ready to buy your first shares.
Search for the Stock: Log in to your brokerage account and go to the trading platform. In the search bar, enter the ticker symbol for the Class B stock, which is BRK.B.
Choose Your Order Type: You have a couple of options:
Market Order: This is the most common and simplest option. A market order executes immediately at the best available market price. While it's quick, the price you pay might be slightly different from the last quoted price due to real-time market fluctuations.
Limit Order: A limit order allows you to set a specific price you are willing to pay for the stock. The order will only be executed if the stock's price drops to or below your set limit. This gives you more control over the price, but there's no guarantee the order will be filled. For long-term investors, a market order is often sufficient.
Enter the Quantity: Specify how many shares you want to buy, or if you are using fractional shares, enter the dollar amount you wish to invest.
Submit the Order: Review all the details of your order (ticker symbol, quantity, order type, and estimated cost) and click the "Buy," "Submit," or "Place Trade" button.
Step 5: Monitor Your Investment
Once your order is executed, you are officially a Berkshire Hathaway shareholder! Congratulations!
Tip: Be mindful — one idea at a time.
While it's a long-term investment, it's still a good practice to periodically check on your portfolio's performance. However, avoid checking the price every day. Warren Buffett's philosophy is all about long-term holding, not short-term trading. Berkshire Hathaway doesn't pay a dividend, as Buffett prefers to reinvest all profits back into the company to fuel further growth. This reinvestment strategy has been a key driver of its success for decades.
Frequently Asked Questions (FAQs)
How to buy Berkshire Hathaway stock in India? To buy Berkshire Hathaway stock from India, you need to open a brokerage account with a firm that allows international trading on the US stock market (NYSE). You will need to complete KYC and fill out a W-8BEN form. After funding your account in USD, you can search for the ticker symbol BRK.B and place your buy order.
How to buy Berkshire Hathaway stock without a broker? You cannot buy Berkshire Hathaway stock directly from the company. It must be purchased through a registered brokerage account.
How to invest in Berkshire Hathaway with little money? You can invest with a small amount of money by using a brokerage that offers fractional shares. This allows you to buy a portion of a BRK.B share for as little as a few dollars, rather than buying a whole share.
How to buy Berkshire Hathaway Class A stock? To buy Class A stock (BRK.A), you need to have a brokerage account that allows it, and you'll need a significant amount of capital, as a single share is priced in the hundreds of thousands of dollars. The process is the same as buying Class B stock, but you will use the ticker symbol BRK.A.
Tip: Watch for summary phrases — they give the gist.
How to check Berkshire Hathaway stock price? You can check the real-time or delayed stock price for BRK.B and BRK.A on any financial news website like Bloomberg, Reuters, or Yahoo Finance, or directly through your brokerage account's platform.
How to invest in Berkshire Hathaway for the long term? The best way to invest in Berkshire Hathaway for the long term is to buy shares (BRK.B) and hold them for many years, ideally decades. This aligns with Warren Buffett's own investment philosophy of buying great businesses and holding them "forever."
How to know the difference between BRK.A and BRK.B? BRK.A (Class A) is the original, very expensive share with higher voting rights. BRK.B (Class B) is the much more affordable share with lower voting rights. Both represent ownership in the same company and are tied to the same underlying performance.
How to convert Berkshire Hathaway A shares to B shares? Class A shares (BRK.A) can be converted into Class B shares (BRK.B) at any time. The conversion ratio is 1 share of BRK.A for 1,500 shares of BRK.B. However, the reverse conversion (B to A) is not possible.
How to invest in Berkshire Hathaway through an ETF or mutual fund? You can gain exposure to Berkshire Hathaway's stock by investing in a broad market index fund or ETF, such as an S&P 500 ETF, as BRK.B is a major component of the index.
How to buy Berkshire Hathaway stock on Robinhood or other platforms? The process on platforms like Robinhood, Fidelity, or Charles Schwab is similar. You open and fund an account, search for the ticker "BRK.B," and then place your buy order using either a market or limit order.
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