Of course! Investing in a company as iconic as Berkshire Hathaway, led by the legendary Warren Buffett, is a dream for many. Let's walk through the process, step-by-step.
A Comprehensive Guide: How to Invest in Berkshire Hathaway
So, you want to join the ranks of shareholders in Warren Buffett's empire? Excellent choice! Before we dive into the technicalities, let's get you set up with the right mindset. You're not just buying a stock; you're buying a piece of a holding company that owns a diverse portfolio of businesses, from insurance to railroads and utilities. This is a long-term investment strategy, so be prepared to think like a business owner, not a day trader.
Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Always conduct your own research and consider consulting with a qualified financial advisor before making any investment decisions.
Step 1: Understand the Two Classes of Berkshire Hathaway Stock
Did you know there are two different types of Berkshire Hathaway stock? It's crucial to understand the difference before you invest. This is the very first and most important decision you'll make.
Class A Stock (Ticker: BRK.A): This is the original, and famously expensive, class of stock. As of June 2025, a single share of BRK.A costs over $700,000! It comes with full voting rights, where each share represents one vote. This class of stock is primarily held by long-term, institutional investors and those who have been invested for decades. It is not easily accessible for the average retail investor due to its high price.
Class B Stock (Ticker: BRK.B): Often called "Baby Berkshire," this class was created to make the company's stock more accessible to the public. It trades at a much more affordable price, and as of June 2025, a single share costs around $480-$500. While it has limited voting rights (1/10,000th of a vote per share of Class A), it has the same economic interest in the company's performance. The price of one Class A share is approximately 1,500 times the price of a Class B share, and one Class A share can be converted into 1,500 Class B shares.
For the vast majority of individual investors, Class B (BRK.B) is the practical and recommended choice. You get the same exposure to the company's portfolio without needing a massive amount of capital.
Step 2: Open a Brokerage Account
To buy any stock, including Berkshire Hathaway, you need a brokerage account.
Sub-step 2.1: Choose a Brokerage Platform
There are many online brokerage firms to choose from, each with its own features and fee structures. Some popular options include:
Zerodha, Groww, Upstox (for Indian investors, you'll need a platform that offers US stock investing)
Charles Schwab, Fidelity, E-Trade, Robinhood, Interactive Brokers (for US-based investors)
When choosing a platform, consider factors like:
Fees: Look for platforms with low or zero commission fees on stock trades.
Accessibility: Does the platform offer fractional shares? This is a huge benefit for expensive stocks like BRK.B.
User Interface: Is the platform easy to navigate and understand for a beginner?
Customer Support: Is there reliable customer support if you run into any issues?
Sub-step 2.2: Fund Your Account
Once your brokerage account is open, you need to add money to it. You can do this by linking your bank account and transferring funds electronically. This process can take a few business days, so be patient.
Step 3: Place Your Order
Now for the exciting part! You've chosen your stock class and funded your account. Let's make the purchase.
Sub-step 3.1: Search for the Stock
In your brokerage account's trading platform, use the ticker symbol to find Berkshire Hathaway.
For Class A: BRK.A
For Class B: BRK.B
You will see the current market price of the stock. Remember, stock prices fluctuate throughout the day.
Sub-step 3.2: Decide on Your Order Type
You have a few options for placing your buy order:
Market Order: This is the simplest type of order. You tell your broker to buy the shares at the best available price right now. The order is executed immediately. While it's quick, the final price might be slightly different from what you saw a second ago due to market fluctuations.
Limit Order: This gives you more control. You set a specific maximum price you are willing to pay per share. Your order will only be executed if the stock's price falls to or below your limit price. This can be useful if you're waiting for a specific entry point, but there's no guarantee your order will be filled.
Sub-step 3.3: Specify the Amount
You can either buy a specific number of shares or, if your broker allows, a specific dollar amount.
Buying by Shares: If you want to buy, say, 5 shares of BRK.B, you'll enter "5" in the quantity field.
Buying by Dollar Amount (Fractional Shares): This is a game-changer for expensive stocks. If you only have $100 to invest, you can enter "$100" and your broker will buy a fraction of a share for you. This makes investing in BRK.B extremely accessible, even if you don't have enough money for a full share. Many modern brokerage platforms offer fractional shares.
Sub-step 3.4: Review and Submit
Before you hit the "buy" button, double-check all the details of your order: the ticker symbol, the number of shares or dollar amount, and the order type. Once you're confident, submit the order. You are now a Berkshire Hathaway shareholder!
Step 4: The Long-Term Perspective
Congratulations, you've invested in one of the most successful companies in history! But the journey doesn't end here.
Sub-step 4.1: Be Patient
Warren Buffett's investment philosophy is all about long-term holding. He famously said, "Our favorite holding period is forever." Resist the urge to check the stock price every day.
Sub-step 4.2: No Dividends, So What?
Unlike many other large companies, Berkshire Hathaway does not pay a dividend. Buffett and his team believe that the best use of the company's earnings is to reinvest them back into the business or use them for new acquisitions, which ultimately increases the value of your shares. This is a key part of their growth strategy. So, don't expect a cash payout; instead, expect the value of your ownership to grow over time.
10 Related FAQ Questions
Here are some quick answers to common questions about investing in Berkshire Hathaway.
How to choose between BRK.A and BRK.B?
Choose BRK.B unless you have a substantial amount of capital (hundreds of thousands of dollars) and desire voting rights. BRK.B is much more affordable and offers the same economic exposure.
How to buy Berkshire Hathaway from India?
You can buy Berkshire Hathaway B shares (BRK.B) through Indian brokerage platforms that offer international investing, or through brokers like Interactive Brokers that allow Indian citizens to open accounts and trade US stocks.
How to buy fractional shares of Berkshire Hathaway?
Many modern brokerage platforms like Zerodha (via their US Stocks offering), Wells Fargo, or Stash allow you to purchase fractional shares, meaning you can invest a specific dollar amount, even if it's less than the price of one full share.
How to find the ticker symbol for Berkshire Hathaway?
The ticker symbol for Class A shares is BRK.A and for Class B shares is BRK.B.
How to know if the stock is a good investment?
While past performance is no guarantee of future results, Berkshire Hathaway has a long and stellar track record of outperforming the market under the guidance of Warren Buffett.
How to understand Berkshire Hathaway's investment strategy?
Warren Buffett's strategy focuses on value investing.
How to track the price of Berkshire Hathaway stock?
You can track the live stock price of both BRK.A and BRK.B on financial news websites, your brokerage platform, or by simply searching their ticker symbols on Google Finance or Yahoo Finance.
How to buy Berkshire Hathaway directly from the company?
You cannot buy shares directly from Berkshire Hathaway. You must buy them through a brokerage account on a stock exchange.
How to know if Berkshire Hathaway pays a dividend?
Berkshire Hathaway famously does not pay a dividend.
How to convert BRK.B shares to BRK.A?
You cannot convert Class B shares (BRK.B) to Class A shares (BRK.A).
