Here's a comprehensive, step-by-step guide on how to buy Berkshire Hathaway stock in Canada, inspired by the discussions and advice often found on Reddit's Canadian investing communities.
How to Buy Berkshire Hathaway Stock in Canada: A Comprehensive Guide
So you've heard about Warren Buffett's legendary company, Berkshire Hathaway, and you're ready to get a piece of the action. That's a fantastic first step! As a Canadian investor, you might be wondering how to navigate the process of buying a US-listed stock. Don't worry, it's easier than you might think, and we'll walk you through every single step. Let's dive in!
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| How To Buy Berkshire Hathaway Stock In Canada Reddit |
Step 1: Understand What You're Buying (Class A vs. Class B)
Before you even think about placing an order, you need to understand the two different classes of Berkshire Hathaway stock:
Berkshire Hathaway Class A (BRK.A): This is the OG stock. It's famous for its sky-high price tag. As of late June 2025, one single share of BRK.A is trading for hundreds of thousands of dollars. It's a price that's out of reach for most retail investors. Each share of BRK.A comes with full voting rights.
Berkshire Hathaway Class B (BRK.B): This is the much more accessible version. It was created in 1996 to make the stock available to a wider range of investors. The price is a tiny fraction of the Class A shares, and each Class B share has 1/10,000th of the voting rights of a Class A share. This is the ticker most retail investors in Canada will be buying.
Engaging question: Which class do you think is right for you? If you're a retail investor, the answer is almost certainly BRK.B. It offers the same ownership in the company and the same exposure to its performance without the massive price tag.
Step 2: Open a Brokerage Account
This is the most crucial step. You need a brokerage account that allows you to trade on US stock exchanges like the New York Stock Exchange (NYSE). Fortunately, most Canadian discount brokerages offer this. Here are some of the most popular options, often discussed on Reddit:
Questrade: A popular choice for DIY investors in Canada. They offer commission-free ETF purchases and a low-fee structure. They also allow you to hold USD in your account, which is a major plus.
Wealthsimple Trade: A great option for beginners. They offer commission-free trading on both Canadian and US stocks, but be aware of their currency conversion fees if you don't have a US dollar account.
TD Direct Investing / RBC Direct Investing / CIBC Investor's Edge: These are the brokerage platforms offered by the big Canadian banks. They are generally reliable and user-friendly, but their trading commissions are typically higher than the discount brokerages.
Interactive Brokers (IBKR): This is often considered the gold standard for active traders due to its low commissions and excellent currency conversion rates. It might be a bit overwhelming for a complete beginner, but it's a powerful platform.
Moomoo Canada: A newer player in the Canadian market, offering commission-free trading on US and Canadian stocks and ETFs.
Pro-Tip from Reddit: Look for a brokerage that offers a US dollar account (a "CAD/USD dual currency account" is a common term). This is a huge money-saver when buying US stocks!
QuickTip: Stop to think as you go.
Step 3: Fund Your Account and Deal with the Currency Exchange
Once you've opened your account, you need to put money in it. You'll be funding it with CAD, but you need USD to buy BRK.B on the NYSE. This is where currency exchange fees come into play, and they can eat into your returns. You have two main options:
Option A: The Simple Way (and most expensive)
Simply deposit CAD into your account.
When you go to buy the US stock, your brokerage will automatically convert your CAD to USD at their own exchange rate, which includes a markup (often a 1.5-2.5% spread).
This is a very easy way to do it, but it's not the most cost-effective.
Option B: The "Norbert's Gambit" Method (The Redditor's favorite!)
This is a clever and popular strategy on Reddit to minimize currency conversion fees. Here's a quick rundown of the steps involved in Norbert's Gambit:
Buy a dual-listed security: Purchase a stock or ETF that trades on both the TSX (in CAD) and a US exchange (in USD) and has a CUSIP number. A popular choice is DLR.U.TO (Horizons US Dollar Currency ETF).
Journal the shares: Call your brokerage and ask them to "journal" your shares from the CAD side of the exchange to the USD side. This is an internal transfer of the shares from your CAD account to your USD account, so it avoids a currency conversion. This step can take a few business days.
Sell the shares: Once the shares have been journaled, sell them on the US exchange. The proceeds from the sale will be in USD, which you can now use to buy BRK.B.
Why is this a big deal? Because you're only paying the commission on two trades (buy and sell) instead of the hefty currency conversion fee. For large amounts of money, this can save you hundreds, even thousands, of dollars.
Step 4: Place Your Order
QuickTip: Read with curiosity — ask ‘why’ often.
Now for the exciting part! You have USD in your account, and you're ready to buy.
Find the ticker: The ticker symbol for Berkshire Hathaway Class B is BRK.B on the New York Stock Exchange (NYSE). There is also a Canadian Depository Receipt (CDR) that trades on the CBOE Canada exchange with the ticker BRK.
BRK.B (NYSE): This is the actual US stock, denominated in USD.
BRK (CBOE Canada): This is a Canadian Depository Receipt that is a fractional equivalent of the BRK.B shares, hedged to CAD. Some Redditors have noted that while it tracks the US stock, the hedging fees can impact returns.
Place your order:
Market Order: This will buy the shares at the current market price. It's simple but can be risky if the price suddenly moves.
Limit Order: This allows you to set a maximum price you're willing to pay per share. Your order will only be executed if the stock hits your specified price or lower. This is generally the recommended approach for buying stocks to ensure you don't overpay.
Specify the quantity: Enter the number of shares you want to buy. Remember, even the Class B shares can be pricey, so make sure you've budgeted for it.
Step 5: Monitor Your Investment
Congratulations! You are now a part-owner of one of the most respected companies in the world. Now, the key is to monitor your investment.
Track the stock price: Keep an eye on BRK.B's performance.
Review your portfolio: Check your brokerage account regularly to see how your investment is doing.
Keep learning: Follow the news about Berkshire Hathaway, and read Warren Buffett's famous annual letters to shareholders for unparalleled wisdom.
10 Related FAQs Starting with 'How to'
How to find a good Canadian brokerage for US stocks?
Look for brokerages with low trading commissions, access to US exchanges (NYSE and NASDAQ), and the ability to hold US dollars in your account to avoid constant currency conversion fees. Popular choices include Questrade, Wealthsimple, and Interactive Brokers.
How to use Norbert's Gambit to save on FX fees?
QuickTip: Revisit posts more than once.
The key steps are to buy a dual-listed security (like DLR.TO) in CAD, call your broker to "journal" the shares to your USD account, and then sell them for USD. This avoids the high exchange rate spread charged by most brokers.
How to convert my TFSA to a US dollar TFSA?
Most brokerages that offer a US dollar account will allow you to set up a US dollar TFSA or RRSP. You can then hold US cash in that account and trade US stocks without incurring currency conversion fees on every transaction.
How to calculate the total cost of buying BRK.B?
The total cost will include the share price multiplied by the number of shares, plus any commission fees charged by your brokerage (unless it's commission-free), and the currency conversion fee or spread.
How to know if a brokerage is reliable?
Look for a brokerage that is regulated by the Canadian Investment Regulatory Organization (CIRO) and is a member of the Canadian Investor Protection Fund (CIPF). This provides protection for your investments up to certain limits.
QuickTip: Slow down if the pace feels too fast.
How to decide between a TFSA and an RRSP for holding US stocks?
A TFSA is generally preferred for US dividend-paying stocks because of a tax treaty between Canada and the US that can exempt you from the 15% US withholding tax on dividends. For non-dividend-paying stocks, either a TFSA or RRSP can be a good choice depending on your individual tax situation and financial goals.
How to find the Berkshire Hathaway CDR ticker in Canada?
The Canadian Depository Receipt (CDR) for Berkshire Hathaway trades on the CBOE Canada exchange under the ticker symbol BRK.
How to read a stock chart for BRK.B?
A stock chart will show you the price history of the stock. You'll see candlesticks or lines representing the price movement over time. You can use technical indicators and tools offered by your brokerage to analyze trends and make informed decisions.
How to transfer my BRK.B shares to another brokerage in Canada?
You can initiate a transfer with your new brokerage. They will provide you with a form to fill out, and they will coordinate the transfer of your shares from your old brokerage to your new one. There may be a fee associated with this.
How to stay up-to-date on Berkshire Hathaway news?
Follow financial news websites, subscribe to newsletters from reputable sources, and, most importantly, read Warren Buffett's annual letter to shareholders, which is released every February. It's a goldmine of information and wisdom.
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