Ready to embark on a journey with one of the world's most renowned investment powerhouses? Investing in Berkshire Hathaway isn't just about buying a stock; it's about buying into a philosophy of value, discipline, and long-term thinking, pioneered by the legendary Warren Buffett. If you're ready to learn how you can become a part of this incredible story, let's dive into this comprehensive, step-by-step guide.
Step 1: Understand What You're Buying
Before you even think about placing an order, do you know what Berkshire Hathaway actually is? It's not just a single company that makes one product. It's a massive conglomerate, a holding company that owns a diverse portfolio of businesses and a large collection of stocks.
Owned Businesses: Think of iconic brands you interact with every day. Berkshire Hathaway owns giants like GEICO (insurance), BNSF Railway (rail transport), and a multitude of utilities and energy companies. These are the engines that generate consistent cash flow.
Stock Portfolio: Beyond its wholly-owned businesses, Berkshire Hathaway holds a massive portfolio of publicly traded stocks. Warren Buffett and his team have handpicked companies like Apple, Coca-Cola, American Express, and Bank of America, among many others. This is like a curated, actively managed mutual fund, but in the form of a single stock!
So, by investing in Berkshire Hathaway, you're not just buying a piece of a company; you're buying a piece of a diversified, well-managed, and time-tested investment vehicle.
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| How To Invest Berkshire Hathaway |
Step 2: Choose Your Shares - Class A vs. Class B
This is a crucial step. Berkshire Hathaway offers two classes of stock, and the difference is significant.
Sub-heading: The Legendary Class A (BRK.A)
The original shares, often referred to as BRK.A, are famous for their astronomical price. These shares have never undergone a stock split, a deliberate decision by Warren Buffett to attract long-term investors who aren't interested in short-term price fluctuations.
Price: As of late June 2025, the price of a single Class A share is well over $700,000! This puts them out of reach for the vast majority of individual investors.
Voting Rights: Each Class A share comes with substantial voting rights, giving its holder a significant say in company matters.
Convertibility: Class A shares can be converted into Class B shares, but not vice-versa.
Tip: Keep scrolling — each part adds context.
Sub-heading: The Accessible Class B (BRK.B)
In 1996, to make the company more accessible to a wider audience, Berkshire Hathaway introduced Class B shares, ticker BRK.B. These are the shares that most individual investors will consider.
Price: The price of a Class B share is dramatically lower, often a few hundred dollars. This makes it a much more affordable and practical option for retail investors.
Voting Rights: Class B shares have significantly fewer voting rights—specifically, 1/10,000th of the voting power of a Class A share. For most retail investors, this is a non-issue.
Convertibility: You cannot convert Class B shares into Class A shares.
Performance: The performance of both Class A and Class B shares is closely tied to the underlying value of the company's assets. While there can be minor price differences due to market dynamics, they both track the same underlying business.
For the vast majority of investors, the BRK.B share is the way to go. It gives you exposure to the same portfolio and the same management, but at a price that fits within a normal investment budget.
Step 3: Open and Fund a Brokerage Account
You cannot buy Berkshire Hathaway stock directly from the company. You need a brokerage account, which is a specialized account for buying and selling investments like stocks.
Choose a Reputable Brokerage: Select a brokerage platform that is reliable, has low fees, and offers access to US-listed stocks on the New York Stock Exchange (NYSE), where BRK.B is traded. Popular options include platforms like Zerodha, Upstox, Groww, or dedicated international trading platforms like INDmoney in India. Do your research to compare their fee structures, especially for currency conversion and brokerage fees on US stocks.
Complete the Account Opening Process: This typically involves providing your personal details, proof of identity (like PAN Card and Aadhaar), and proof of address. The process is now largely digital and can be completed in a matter of minutes or hours.
Fill Out a W-8BEN Form (for non-US residents): If you are an Indian resident, you will likely need to fill out a W-8BEN form. This is a standard US tax form that helps you claim a reduced withholding tax rate on dividends from US stocks. While Berkshire Hathaway does not pay a dividend, it's a routine formality for international investors.
Fund Your Account: Once your account is approved, you need to transfer money from your bank account to your brokerage account. For Indian investors, this involves converting your Indian Rupees (INR) to US Dollars (USD). Be mindful of the foreign exchange rate and any conversion fees charged by your bank or brokerage.
Step 4: Search for the Stock and Place Your Order
Now for the exciting part!
Search for the Ticker: Within your brokerage's trading platform, search for the stock using its ticker symbol: BRK.B.
Decide on the Amount: You can either buy a specific number of shares or, if your broker supports it, buy a fractional share. Fractional shares are a game-changer! Instead of having to buy a full share, you can invest a specific dollar amount (e.g., $100) and own a fraction of a share. This is a fantastic way to start small.
Choose Your Order Type: You'll typically have two main options:
Market Order: This is the simplest. Your order will be executed immediately at the best available market price. Be aware that the price can fluctuate in the seconds it takes to place the order.
Limit Order: This gives you more control. You can set a specific price you want to buy the stock at. Your order will only be executed if the stock's price drops to or below your limit price. This can be useful if you have a target price in mind.
Submit Your Order: Review all the details of your order, including the price, quantity, and any fees, and then click "Buy" or "Submit Trade."
Step 5: Monitor Your Investment (But Don't Obsess!)
Tip: Focus on clarity, not speed.
Congratulations, you're now a Berkshire Hathaway shareholder! Warren Buffett's philosophy is all about long-term investing, so don't feel the need to check the stock price every five minutes.
Long-Term Horizon: Berkshire Hathaway is built for the long haul. Its value grows over time as its businesses and stock holdings generate profits.
Stay Informed: Instead of daily price checks, focus on staying informed about the company's performance by reading its annual reports and Warren Buffett's famous shareholder letters.
Consider Adding Over Time: If you believe in the company's long-term prospects, consider adding to your position over time through a strategy like dollar-cost averaging, where you invest a fixed amount at regular intervals.
10 Related FAQ Subheadings with Quick Answers
How to find Berkshire Hathaway's annual reports?
You can find Berkshire Hathaway's annual reports and quarterly filings on its official investor relations website, which is a great resource for understanding the company's financials and performance.
How to buy fractional shares of Berkshire Hathaway Class B?
Many modern online brokerages, especially those catering to retail investors, offer the option to buy fractional shares. Look for platforms that advertise "fractional shares" or "stock slices" and simply enter the dollar amount you want to invest instead of the number of shares.
How to track the performance of my Berkshire Hathaway investment?
QuickTip: Let each idea sink in before moving on.
You can track your investment's performance through your brokerage account's portfolio dashboard. It will show you the current value, gain/loss, and other key metrics.
How to invest in Berkshire Hathaway from India with minimal fees?
Look for brokerage platforms in India that offer zero brokerage or low-cost trading for US stocks. Additionally, compare their currency conversion rates and hidden fees. INDmoney, for example, is known for its low fees and favorable exchange rates for US stock investing.
How to understand if Berkshire Hathaway is a good investment for me?
Berkshire Hathaway is a good fit for investors with a long-term mindset who believe in the principles of value investing and diversification. If you want a hands-off approach to a diversified portfolio managed by a world-class team, it could be a solid option.
How to know the difference in market performance between BRK.A and BRK.B?
While their values are fundamentally linked, minor performance differences can occur due to market demand and liquidity. However, over the long term, they should track each other closely. The BRK.A share often has lower trading volume than the much more liquid BRK.B.
QuickTip: Ask yourself what the author is trying to say.
How to calculate my returns on Berkshire Hathaway?
Your total return will be a combination of the capital appreciation (increase in share price) and, for non-US investors, the currency appreciation of the US dollar against your local currency (e.g., INR).
How to sell my Berkshire Hathaway shares?
Selling is the reverse of buying. Log in to your brokerage account, find BRK.B in your portfolio, and place a sell order. You can choose between a market order to sell immediately or a limit order to sell at a specific price.
How to use a limit order to buy BRK.B?
When placing your buy order, select "Limit Order" instead of "Market Order." Enter the maximum price you are willing to pay per share. Your order will remain open until it's executed at that price or lower, or until it expires.
How to know about Warren Buffett's investment philosophy?
To truly understand Buffett's philosophy, read his annual letters to shareholders, which are a masterclass in business and investing. He emphasizes buying businesses with a strong "moat" (a competitive advantage), a history of profitability, and ethical management, and holding them for the long term.
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