Here is a very lengthy and detailed guide on the cost of buying Berkshire Hathaway stock, with a step-by-step process, styling variations, and an FAQ section.
The Ultimate Guide to the Cost of Buying Berkshire Hathaway Stock
Hello, aspiring investor! Are you ready to potentially own a piece of one of the most iconic and successful companies in the world, led by the legendary Warren Buffett? It's an exciting thought, isn't it? But before you can join the ranks of Berkshire Hathaway shareholders, you need to understand the costs involved. It's not just a single price tag; there are a few key factors to consider. Let's break down the journey, step by step.
Step 1: Understand the Two Tickers - BRK.A vs. BRK.B
First and foremost, you need to know that there isn't just one Berkshire Hathaway stock. There are two classes of shares, and their prices are vastly different. This is a crucial distinction and the first thing you need to grasp before you even think about buying.
Berkshire Hathaway Class A (BRK.A): This is the original, prestigious, and famously expensive share. It has never had a stock split, which is why its price has grown to an astronomical level. As of the market close on June 27, 2025, one share of BRK.A costs around $729,000. Yes, you read that right. One share is more than the price of a luxury car or even a small apartment in many places. It is important to note that this price fluctuates daily, so always check the latest quote.
Berkshire Hathaway Class B (BRK.B): This is the more accessible share class, created by Warren Buffett specifically for smaller investors. It has a much lower price and is the one that most individual investors will consider. As of June 27, 2025, a single share of BRK.B is priced at approximately $485. This is the ticket for most people who want to invest in Berkshire Hathaway.
So, the first step is to ask yourself: are you a multi-millionaire looking to buy a Class A share for its special voting rights, or are you a regular investor who wants to participate in the company's growth through a more affordable Class B share? For most of us, the answer is clear: BRK.B is the way to go.
Step 2: Choosing Your Investment Path
Now that you know which class of stock you're aiming for, you need to figure out how you're going to buy it. You can't just walk into a bank and ask for a share. You need a platform to facilitate the trade.
Sub-heading: Option A: The Full Share Route
This is the traditional way to invest. You buy one or more whole shares of the stock.
Open a Brokerage Account: If you don't already have one, you'll need to open an investment account with a brokerage firm. Think of it as a bank account for your investments. Popular options include companies like Charles Schwab, Fidelity, Zerodha (in India), Interactive Brokers, and others.
Fund Your Account: Transfer money from your bank account to your new brokerage account. This is the capital you'll use to buy your shares.
Place Your Order: Once your account is funded, search for the stock using its ticker symbol: BRK.B. You'll then specify how many shares you want to buy.
Let's do the math: If you want to buy 5 shares of BRK.B and the price is $485 per share, your total investment will be 5 shares x $485/share = $2,425. This is your raw stock cost.
Sub-heading: Option B: The Fractional Share Route
What if you don't have enough money to buy even a single share of BRK.B? Don't worry, technology has made investing more accessible than ever. Many modern brokerage platforms allow you to buy fractional shares.
Find a Brokerage Offering Fractional Shares: Not all brokers offer this feature, so you'll need to find one that does. Some popular examples include Robinhood, Stash, and Fidelity.
Invest a Dollar Amount: Instead of buying a specific number of shares, you can choose to invest a specific dollar amount. For instance, you could say, "I want to invest $100 in BRK.B."
Get a Fraction of a Share: The brokerage will then purchase a portion of a share for you. If the share is priced at $485 and you invest $100, you will own a fraction of a share, in this case, approximately 0.206 shares ($100 / $485).
This option is perfect for new investors or those who want to dollar-cost average into a position over time.
Step 3: Factor in the Transaction Costs (Brokerage Fees)
Now, here's where the cost gets a little more nuanced. While many modern brokerages advertise "commission-free" trading, there can still be other minor fees.
Commissions: For a long time, buying and selling stocks came with a commission fee, often a flat fee or a percentage of the trade value. Today, most major online brokerages in the US have eliminated commissions for stock and ETF trades. This is a huge benefit for investors!
Regulatory Fees: These are very small fees imposed by regulatory bodies like the SEC (U.S. Securities and Exchange Commission). They are typically just a few cents for a large transaction and are not something you need to worry about for small trades.
Account Fees: Some brokerages may charge account maintenance fees, inactivity fees, or other administrative fees. These are becoming less common, but it's important to check the fine print of your chosen brokerage.
In most cases, if you use a commission-free brokerage, the cost of buying the stock will be very close to the market price of the shares you purchase.
Step 4: The Total Cost to Buy Berkshire Hathaway Stock
Let's summarize the total cost with an example.
Scenario: You want to buy 10 shares of BRK.B.
Current Share Price (approx.): $485
Number of Shares: 10
Total Raw Stock Cost: 10 shares x $485/share = $4,850
Brokerage Commission: $0 (assuming a commission-free brokerage)
Regulatory Fees: Negligible (e.g., a few cents)
Total Estimated Cost to Buy: Approximately $4,850
This is the money you need to have in your account to execute the trade. Keep in mind that the stock price can change between the time you look at the quote and the time you place your order, so it's wise to have a little extra in your account.
Step 5: The Cost of Waiting and the Cost of Not Investing
This isn't a direct transaction cost, but it's a vital concept to understand. The price of Berkshire Hathaway stock, like any stock, fluctuates. The price you see today will be different tomorrow. The real cost could be waiting too long and missing out on potential growth. Conversely, investing without a plan could lead to losses. Therefore, it's essential to do your research and invest with a long-term perspective, aligning with Berkshire's own philosophy. Do not invest money you cannot afford to lose.
10 FAQs: How to Get Started with Berkshire Hathaway Stock
How to buy Berkshire Hathaway stock in India?
You can buy US stocks like Berkshire Hathaway through brokerage platforms in India that offer international trading, such as Zerodha, Groww, or Vested. You'll need to complete a Know Your Customer (KYC) process and fund your US stock wallet, usually with US dollars.
How to buy fractional shares of Berkshire Hathaway stock?
To buy fractional shares, you need to use a brokerage that supports this feature, such as Fidelity or Stash. Instead of entering the number of shares, you'll enter the dollar amount you wish to invest (e.g., $50, $100, etc.).
How to buy Berkshire Hathaway Class A stock?
You can buy BRK.A stock through any brokerage platform that offers it. However, due to its extremely high price, you will need a significant amount of capital in your account. It's often reserved for high-net-worth individuals and institutional investors.
How to invest in Berkshire Hathaway if I don't have much money?
Your best option is to buy fractional shares of BRK.B stock through a brokerage that offers them. This allows you to invest with as little as a few dollars. Alternatively, you can invest in an S&P 500 index fund or ETF, as Berkshire Hathaway is a major holding in the S&P 500.
How to check the current price of Berkshire Hathaway stock?
You can check the live price of BRK.A and BRK.B on various financial websites and apps like Google Finance, Yahoo Finance, Nasdaq, and your brokerage platform's app.
How to understand the difference between BRK.A and BRK.B?
The main difference is price and voting rights. BRK.A is very expensive and carries significant voting power, while BRK.B is much cheaper and carries a small fraction of the voting rights (1/10,000th of a BRK.A share). BRK.B shares can also be split, while BRK.A shares have never been.
How to find a brokerage with no commission fees for buying BRK.B?
Most major online brokerages today, such as Fidelity, Charles Schwab, and Robinhood, offer commission-free trading for US-listed stocks and ETFs. It's always best to check their fee schedule before opening an account.
How to sell my Berkshire Hathaway stock?
The process is the reverse of buying. You log in to your brokerage account, search for the stock in your portfolio, and place a "sell" order. You can choose a market order to sell at the current price or a limit order to sell at a specific price.
How to know if Berkshire Hathaway is a good investment for me?
Investing in any stock requires research. You should consider your financial goals, risk tolerance, and investment horizon. Research Berkshire Hathaway's business segments, its history, and its leadership. Remember, past performance is not indicative of future results.
How to find out if a brokerage offers fractional shares?
You can check the brokerage's website or contact their customer service. Many platforms will explicitly state on their website whether they offer fractional share investing, often in their FAQ or pricing sections.
