Of course! Selling a stock, especially one as iconic as Berkshire Hathaway, can feel like a significant decision. But with the right knowledge and a clear process, you can navigate it with confidence. Let's get started.
How to Sell Your Berkshire Hathaway Stock: A Step-by-Step Guide
Step 1: The All-Important Question: Why Are You Selling?
Before you even think about hitting the "sell" button, you need to answer a fundamental question: Why are you selling your Berkshire Hathaway stock? Are you selling because you need the money for a big purchase, like a down payment on a house? Are you rebalancing your portfolio to reduce your exposure to a single stock? Or are you simply worried about the future of the company after Warren Buffett's eventual departure?
Your reason for selling is critical because it will influence the entire process, including the timing of your sale and the tax implications. Think carefully about this.
Step 2: Know What You Own: Class A vs. Class B Shares
This is a crucial step when it comes to Berkshire Hathaway. The company has two classes of stock, and understanding the difference is paramount to your selling process.
Tip: Every word counts — don’t skip too much.
Berkshire Hathaway Class A (BRK.A): These are the original, and famously expensive, shares. As of June 2025, one share of BRK.A costs over $600,000, making it inaccessible to most retail investors. They come with a high level of voting power and have never had a stock split.
Berkshire Hathaway Class B (BRK.B): These are the "baby" Berkshire shares. Created in 1996, they were designed to be more affordable and accessible to a wider range of investors. As a result, they trade for a fraction of the price of BRK.A. A key difference is that BRK.B shares have significantly less voting power than BRK.A shares.
Important distinction: You can convert one BRK.A share into 1,500 BRK.B shares, but you cannot convert BRK.B shares back into BRK.A. This conversion feature is a vital tool for BRK.A shareholders who may want to sell a portion of their holdings without selling their entire, highly valuable share.
Step 3: Access Your Brokerage Account
This is where the action happens. Log into your brokerage account where your Berkshire Hathaway shares are held. This could be a platform like Fidelity, Charles Schwab, E*TRADE, or any other brokerage you use.
If you don't know your login information, you'll need to go through the process of resetting your password or contacting your broker's customer support.
If your shares are held in a physical certificate, you will need to contact your broker or a transfer agent to convert them into a digital format before you can sell them.
Step 4: Place Your Sell Order
Once you're logged in, navigate to the trading or "sell" section of your brokerage's website or app.
Sub-step 4.1: Find the Stock Symbol
You will need to enter the stock symbol. For Berkshire Hathaway, this is either BRK.A or BRK.B. Be absolutely sure you are selling the correct class of shares!
QuickTip: Keep going — the next point may connect.
Sub-step 4.2: Choose Your Order Type
This is a critical decision that can affect the price you get for your shares. Here are the most common order types:
Market Order: This is the simplest option. You instruct your broker to sell your shares immediately at the best available market price. While it's quick, the price can fluctuate rapidly, so you might not get the exact price you see on the screen. This is generally not recommended for large orders or for volatile stocks.
Limit Order: This is a much smarter choice for most investors. You set a specific price at which you are willing to sell your shares. Your order will only be executed if the stock's price reaches or exceeds your limit price. This gives you more control and helps you avoid selling for less than you want.
Stop-Loss Order: A stop-loss order is an instruction to sell your shares if the price drops to a certain level. This is often used to protect against significant losses. For example, you could set a stop-loss order at a price 10% below the current market price. If the stock falls to that price, your shares are automatically sold.
Stop-Limit Order: This is a more advanced version of a stop-loss order. You set both a stop price and a limit price. When the stock hits your stop price, it triggers a limit order to sell at your specified limit price. This offers more control than a simple stop-loss order.
Sub-step 4.3: Enter the Number of Shares
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Enter the exact number of shares you want to sell. For BRK.A shares, this will likely be just one. For BRK.B, you may be selling multiple shares. Double-check this number before you submit the order!
Step 5: Review and Confirm Your Order
Before you finalize the transaction, your brokerage will show you a confirmation screen. Read this screen carefully! It will display the stock symbol, the number of shares, the order type, and the estimated proceeds. Look for any errors. Once you're confident, submit the order.
Step 6: Understand the Settlement Process
QuickTip: Ask yourself what the author is trying to say.
After you sell your shares, the transaction is not immediate. It will take a few business days for the sale to "settle," meaning the cash from the sale will be available in your brokerage account. This is a standard process known as T+2 settlement, which means the trade settles two business days after it is executed.
You will see the cash reflected in your account, but you won't be able to withdraw it until the settlement is complete.
Step 7: Consider the Tax Implications
Congratulations, you've sold your shares! Now, it's time to think about taxes. The sale of stock is a taxable event.
Capital Gains: If you sold your shares for more than you paid for them, you have a capital gain. This gain will be taxed.
Short-Term Capital Gains: If you held the stock for one year or less, your gain will be taxed at your ordinary income tax rate.
Long-Term Capital Gains: If you held the stock for more than one year, your gain will be taxed at a lower, more favorable long-term capital gains tax rate.
Capital Losses: If you sold your shares for less than you paid for them, you have a capital loss. You can use these losses to offset other capital gains and, in some cases, a portion of your ordinary income.
It is highly recommended to consult with a qualified tax advisor to understand your specific tax situation.
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| How To Sell Berkshire Hathaway Stock |
10 Related FAQ Questions
Here are some quick answers to common questions about selling Berkshire Hathaway stock.
How to determine if I own BRK.A or BRK.B shares? You can easily find this information in your brokerage account portfolio. The ticker symbol will be listed next to the company name: BRK.A or BRK.B.
Tip: Pause, then continue with fresh focus.
How to sell a single share of BRK.A? You would sell a single share of BRK.A just like any other stock, by placing a sell order for "1" share in your brokerage account using the ticker symbol BRK.A. Given its high value, selling even one share will generate a significant amount of cash.
How to sell fractional shares of BRK.B? If your brokerage offers fractional share trading, you can sell a portion of a BRK.B share by entering a decimal value in the quantity field (e.g., 0.5 shares). This is a common feature on many modern platforms.
How to convert BRK.A to BRK.B before selling? You need to contact your brokerage directly to initiate this conversion. They will guide you through the process of converting your BRK.A share into 1,500 BRK.B shares, which can then be sold in smaller, more liquid increments.
How to sell my Berkshire Hathaway stock without a brokerage account? If you have a physical stock certificate, you will need to open a brokerage account or work with a transfer agent (like Computershare, which handles Berkshire Hathaway's shares) to sell your shares. They can help you convert the physical certificate into a digital format.
How to set a limit order to sell my Berkshire Hathaway shares? In your brokerage's trading interface, select "Limit" as your order type and enter the desired selling price in the "limit price" field.
How to calculate the capital gains tax on my Berkshire Hathaway sale? To calculate your capital gain, subtract your cost basis (the price you paid for the shares, plus any commissions) from the selling price. The tax rate will depend on whether your gain is short-term (held for one year or less) or long-term (held for more than one year). Consult a tax professional for a precise calculation.
How to sell my shares after market hours? Some brokerages offer extended-hours trading. You can place an order during these hours, but be aware that liquidity may be lower and price volatility can be higher. Look for the "after-hours" or "extended-hours" option when placing your sell order.
How to sell Berkshire Hathaway shares held in a retirement account (e.g., 401k or IRA)? The process is the same as selling shares in a regular brokerage account. However, you will not have to pay capital gains tax on the sale within the retirement account. Taxes will only be due when you withdraw the money in retirement.
How to check the market price of BRK.A and BRK.B before selling? You can check the live market price on financial websites like Google Finance, Yahoo Finance, or your brokerage's platform by searching for the ticker symbols BRK.A and BRK.B.
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