Have you ever looked at the stock market and seen a ticker symbol that seems to have a mind of its own? Maybe you've heard whispers of a stock so expensive that a single share costs more than a luxury car. If you've been curious about Berkshire Hathaway's legendary Class A stock, you've come to the right place. Let's embark on a journey to understand not just how many of these unique shares exist, but also the story behind them.
Step 1: Get Ready to Uncover the "Oracle's" Secret
First things first, let's engage with the mystery. Think of Berkshire Hathaway as a vast, well-managed kingdom of businesses, and the shares as ownership stakes. The Class A shares (ticker: BRK.A) are like the crown jewels – they are extremely valuable, grant a lot of voting power, and are famously never split by Warren Buffett, the "Oracle of Omaha."
So, are you ready to dive into the numbers and learn why this stock is so different from almost any other on the market? Let's go!
Step 2: Understanding the Concept of "Shares Outstanding"
Before we get to the specific number, it's crucial to understand what "shares outstanding" means. This is the total number of a company's shares that have been issued to the public and are currently held by investors. It's a key metric for calculating a company's market capitalization and other financial ratios.
There's a distinction between authorized shares and outstanding shares. A company can authorize a certain number of shares to be issued, but they may not all be in circulation. The number of outstanding shares can change over time due to various corporate actions like stock buybacks or new share issuance. In Berkshire's case, a key factor is buybacks, which Warren Buffett and his team have engaged in to return value to shareholders.
Step 3: Finding the Current Number of Berkshire Hathaway Class A Shares
This is where the direct answer comes in. As of recent financial filings and reports (early to mid-2025), the number of outstanding Berkshire Hathaway Class A shares is approximately 1.44 million.
It's important to note that this number can and does change slightly as the company engages in share repurchases. A key characteristic of Berkshire Hathaway's capital allocation strategy is to buy back its own stock when it is trading below its intrinsic value. This reduces the number of outstanding shares and increases the ownership stake of remaining shareholders, which is a major reason why Warren Buffett believes in this practice.
Think about it: If you own a piece of a pie, and the company buys back a slice, your remaining piece becomes a larger proportion of the whole pie. That's the essence of share buybacks.
Step 4: Decoding the Two-Class System (BRK.A vs. BRK.B)
This is a critical part of the Berkshire Hathaway story. You'll often see two ticker symbols for the company: BRK.A and BRK.B. Why two classes?
Sub-heading 4.1: The Origin of the Class B Shares
In 1996, to address the skyrocketing price of the Class A shares and make the stock more accessible to smaller investors and mutual funds, Berkshire Hathaway created the Class B shares (ticker: BRK.B).
Sub-heading 4.2: The Key Differences in Detail
Here's a breakdown of the differences:
Price: The most obvious difference. The Class A shares are extremely expensive, often trading for hundreds of thousands of dollars per share. The Class B shares are much more affordable, with a value that is 1/1,500th of the Class A shares. This makes them accessible to a much broader range of investors.
Voting Rights: This is where the real power lies. A single Class A share has 10,000 times the voting rights of a single Class B share. This structure ensures that Warren Buffett and other long-term, committed shareholders who hold Class A stock retain control over the company.
Convertibility: Class A shares can be converted into Class B shares, but not vice versa. This is a one-way street. If you own a Class A share and want to sell a portion of your stake without selling the entire share, you can convert it into 1,500 Class B shares and sell those. This flexibility is a significant benefit for Class A shareholders.
Stock Splits: As mentioned, the Class A shares have never split. This is a philosophical decision by Warren Buffett to attract long-term, buy-and-hold investors and discourage short-term speculation. The Class B shares, on the other hand, have split once, in 2010.
Step 5: The Impact of a Low Share Count
The low number of Class A shares outstanding contributes to its unique characteristics:
High Price: With a limited supply and immense demand, the price per share is naturally very high.
Low Trading Volume: Compared to other major stocks, the trading volume for BRK.A is very low. This is a direct result of the high price and the "buy-and-hold" philosophy of its investors.
Stability and Investor Profile: The high price and lack of splits attract a specific type of investor—one who is committed to a long-term strategy and not interested in day trading. This contributes to the stock's stability.
10 Related FAQ Questions and Quick Answers
Here are some common questions about Berkshire Hathaway's stock, starting with "How to...".
1. How to buy Berkshire Hathaway Class A stock?
To buy Class A stock, you would need a brokerage account and a significant amount of capital, as a single share trades for over half a million dollars. You can place an order for the ticker symbol BRK.A.
2. How to invest in Berkshire Hathaway if you can't afford a Class A share?
The most common way is to buy Class B shares (BRK.B), which are much more affordable. You can also invest in mutual funds or ETFs that hold Berkshire Hathaway shares in their portfolio.
3. How to convert Berkshire Hathaway Class A shares to Class B?
You can convert your Class A shares to Class B shares through your brokerage. Each BRK.A share converts into 1,500 BRK.B shares.
4. How to calculate Berkshire Hathaway's market capitalization?
You can calculate the market capitalization by multiplying the total number of outstanding shares (Class A and Class B, after converting Class A to Class B equivalent) by the current share price.
5. How to find the latest number of outstanding shares?
You can find the most up-to-date information in Berkshire Hathaway's quarterly and annual reports filed with the U.S. Securities and Exchange Commission (SEC), often found on their investor relations website or through financial data providers.
6. How to tell the difference between Class A and Class B shares at a glance?
The ticker symbols are different: BRK.A for Class A and BRK.B for Class B. The price difference is also a dead giveaway.
7. How to participate in Berkshire Hathaway's annual meeting as a shareholder?
Owning any class of Berkshire Hathaway stock allows you to attend the famous annual shareholders' meeting in Omaha, Nebraska, where Warren Buffett and Charlie Munger (before his passing) answered questions from investors.
8. How to understand the voting rights of each share class?
A single Class A share gives you 10,000 times the voting power of a single Class B share. This is a key reason for the price and ownership structure.
9. How to know if the company is buying back shares?
The company's share buyback activity is reported in its quarterly and annual financial reports, including the cash flow statement and the statement of changes in shareholders' equity.
10. How to find historical data on the number of Berkshire Hathaway shares outstanding?
Historical data is available in the company's past annual reports and through financial data websites like Macrotrends or YCharts. The number has been decreasing steadily over the past several years due to buybacks.
