Greetings, aspiring investor! Are you ready to unravel the mystery behind one of the most famous and unique stocks in the world? Let's dive deep into the fascinating world of Berkshire Hathaway and its shares. You've asked a great question, as the answer isn't as simple as you might think. We'll explore not just the numbers but also the why behind the two classes of shares.
Step 1: The Tale of Two Tickers - Class A vs. Class B
First things first, let's understand the fundamental concept. Berkshire Hathaway, led by the legendary Warren Buffett, has two distinct classes of common stock:
Class A (BRK.A): This is the original, highly coveted, and famously expensive share. It's often seen as a symbol of long-term, value-oriented investing.
Class B (BRK.B): Introduced later, this class is often called "Baby Berkshire" and is significantly more affordable for the average investor.
Are you surprised that there are two? Many people are! Now, let's get into the nitty-gritty of how many shares are outstanding for each class.
Step 2: Unpacking the Numbers - How Many Shares Are Out There?
This is where the numbers get interesting. Unlike a typical company that might have a few hundred million or a few billion shares, Berkshire Hathaway's share count is a bit more nuanced because of the two classes.
Sub-heading: Class A Shares (BRK.A) - The Exclusive Club
Warren Buffett has famously resisted splitting the Class A shares. He believes the high price tag attracts a certain type of investor – one who is focused on long-term value and not short-term trading. As of recent reports, the number of Class A shares outstanding is remarkably low, which is a key reason for its high price.
As of March 31, 2025, there were approximately 1.44 million Class A shares outstanding.
This small number of shares, combined with the company's massive value, is what drives the share price to astronomical levels, often exceeding $700,000 per share.
Sub-heading: Class B Shares (BRK.B) - The Accessible Option
The Class B shares were created in 1996 to prevent mutual funds from creating unit trusts that would mimic a Berkshire Hathaway investment, and to make the stock accessible to a wider audience. In 2010, the Class B shares underwent a 50-for-1 stock split to facilitate the acquisition of the Burlington Northern Santa Fe railroad. This split significantly increased the number of Class B shares in circulation.
As of March 31, 2025, the number of Class B shares outstanding was approximately 2.16 billion.
This makes the Class B shares far more liquid and affordable, trading at a price that is 1/1500th of the Class A share price.
Step 3: Understanding the Relationship and Value
Now that we know the numbers, let's understand the vital relationship between the two share classes.
Sub-heading: The Conversion Ratio and Voting Rights
This is the most critical difference beyond the price.
Conversion: Each Class A share can be converted into 1,500 Class B shares.
Important Note: The conversion does not work in reverse. You cannot convert Class B shares into Class A shares.
Voting Rights: A Class A share has 10,000 times the voting rights of a Class B share. This means a single Class A shareholder has immense power in the company's decisions. This is a crucial detail for those interested in corporate governance.
Sub-heading: The Price Parity
Due to the conversion ratio, the price of a Class B share should theoretically trade at 1/1500th of the Class A share price. If the price of Class B rises above this ratio, arbitragers can buy the Class A shares, convert them to Class B, and sell them for a profit, which pushes the prices back into alignment. However, because the conversion is a one-way street, the Class B shares can sometimes trade at a slight discount to the 1/1500th ratio of the Class A shares.
Step 4: A Step-by-Step Guide to Buying Berkshire Hathaway Shares
Ready to join the ranks of Berkshire Hathaway shareholders? Here's a practical guide.
Sub-heading: Choose Your Share Class
This is your first and most important decision.
If you have a significant amount of capital (hundreds of thousands of dollars) and are a long-term, buy-and-hold investor: You might consider Class A shares (BRK.A). The high price tag is a natural filter for the kind of investor Buffett wants.
If you have a smaller budget and want to invest in a fraction of the company's value: Class B shares (BRK.B) are the perfect choice. They offer the same economic exposure to Berkshire Hathaway's portfolio of companies without the immense sticker shock of a single Class A share. Most retail investors will choose Class B.
Sub-heading: Open a Brokerage Account
If you don't already have one, you'll need to open a brokerage account. This is a must-have for buying any stocks. You can choose from various online brokerages, like Zerodha, Groww, or Angel One, which offer the ability to invest in US stocks.
Sub-heading: Fund Your Account
Once your account is open, you need to deposit funds. Remember to consider any currency conversion fees if you are buying US stocks from India.
Sub-heading: Place Your Order
Now for the exciting part!
Search for the ticker: Search for BRK.A for Class A shares or BRK.B for Class B shares.
Decide on the amount: You can choose to buy a specific number of shares or a specific dollar amount (if your brokerage offers fractional shares).
Choose your order type:
Market order: This buys the stock at the best available price at that moment.
Limit order: This allows you to set a maximum price you are willing to pay. The order will only execute if the stock hits that price. For long-term investing, a market order is often sufficient.
Submit your order: Click "Buy" or "Place Order" and you're officially a part of the Berkshire Hathaway family!
Step 5: Hold and Learn
Congratulations! You are now a shareholder in one of the world's most successful conglomerates. The next step is to continue learning and holding. Read Warren Buffett's annual letters to shareholders, which are a masterclass in business and investing.
10 Related FAQs
How to find the real-time share count of Berkshire Hathaway? The most accurate and up-to-date share count can be found in Berkshire Hathaway's quarterly and annual financial reports, which are filed with the U.S. Securities and Exchange Commission (SEC). You can access these on the Berkshire Hathaway investor relations website or through financial data providers.
How to calculate the total shares of Berkshire Hathaway in a single class? While you can't simply add them together due to the differing values, you can think of the total "equivalent" Class A shares by dividing the Class B shares by the conversion ratio (1,500). The total outstanding shares of the company, combining both classes, are over 2 billion, but this is a sum of both BRK.A and BRK.B.
How to convert Class A shares to Class B shares? You can convert Class A shares to Class B shares through your brokerage firm. You will need to submit a request to your broker, and they will facilitate the conversion at the 1:1,500 ratio.
How to buy a single Class A share of Berkshire Hathaway? You would need to have enough capital to purchase the share at its current market price, which is in the hundreds of thousands of dollars. You can buy it through a brokerage account just like any other stock.
How to invest in Berkshire Hathaway with a small amount of money? The best way is to buy Class B shares (BRK.B), which are much more affordable. Many brokerages also offer fractional shares, allowing you to invest a specific dollar amount instead of a full share.
How to attend the Berkshire Hathaway annual meeting? Both Class A and Class B shareholders are entitled to attend the annual meeting in Omaha, Nebraska, which is famously known as the "Woodstock for Capitalists." Your ownership of even one Class B share grants you access.
How to understand the historical context of Berkshire Hathaway's shares? Initially, there was only one class of stock (Class A). The Class B shares were created in 1996 and then split in 2010 to make them more accessible and to facilitate a major acquisition.
How to compare the performance of Class A and Class B shares? The two classes of shares track each other very closely. You can compare their historical performance on financial websites using their respective tickers, BRK.A and BRK.B.
How to know if the Class B shares are trading at a discount? You can check if the Class B shares are trading at a discount by comparing their price to 1/1500th of the Class A share price. If the Class B price is lower than this calculated value, it's trading at a discount.
How to find the ticker symbol for Berkshire Hathaway? The ticker symbol for Class A is BRK.A and the ticker symbol for Class B is BRK.B. When looking up the stock, be sure to use the correct ticker for the class you are interested in.