Investing in Berkshire Hathaway, the conglomerate built by legendary investor Warren Buffett, is a dream for many. It's not a "fund" in the typical sense of a mutual fund or ETF, but rather a company with a vast portfolio of wholly-owned businesses and publicly traded stocks. Here's a comprehensive, step-by-step guide on how you can invest in this iconic company, even from a location like Shirpur, Maharashtra.
Ready to embark on a journey with the Oracle of Omaha?
Let's dive right in. The first and most crucial step is to understand what you're actually buying. You're not buying a typical fund that you can invest in through your bank in India. You're buying shares of a US-listed company, Berkshire Hathaway Inc., which trades on the New York Stock Exchange (NYSE).
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| How To Invest In Berkshire Hathaway Fund |
Step 1: Understand the Two Classes of Berkshire Hathaway Stock
This is a critical distinction that many people miss. Berkshire Hathaway offers two classes of stock:
Class A (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 USD. This makes it inaccessible for most retail investors. Each BRK.A share has a significant voting right.
Class B (BRK.B): This is the more affordable and accessible class of stock. It was created in 1996 to allow more investors to own a piece of Berkshire Hathaway. A single share of BRK.B is a tiny fraction of the price of a Class A share (approximately 1/1500th the price of a Class A share, though the voting rights are even lower at 1/10,000th). This is the stock you will most likely be investing in.
The key takeaway here is that both classes of stock represent the same underlying business. The value of your investment is tied to the performance of Berkshire Hathaway as a whole. The difference lies in the price, voting rights, and divisibility.
QuickTip: Check if a section answers your question.
Step 2: Choose a Reputable International Brokerage Platform
Since Berkshire Hathaway is a US-listed company, you can't buy its shares directly on the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE) in India. You will need a brokerage account that allows you to invest in US stocks. Here are some options to consider:
Indian Brokers with US Stock Trading: Some Indian brokerage firms have partnered with US brokers or have their own platforms to facilitate US stock investments. This can be a convenient option as you can use your existing bank account and KYC documents.
International Brokerage Platforms: There are several global brokerage platforms that allow Indian citizens to open an account and invest in US stocks. These platforms are often more specialized and may offer a wider range of US stocks and investment products.
Important Considerations when choosing a broker:
Fees and Charges: Compare brokerage fees, account maintenance fees, and currency conversion charges. Look for platforms that offer competitive rates.
Minimum Investment: Check if there's a minimum deposit or investment amount required to open and maintain an account.
Fractional Shares: Some brokers allow you to buy fractional shares of a stock, which means you can invest a specific amount of money (e.g., $100) and own a fraction of a share. This is particularly useful for a stock like BRK.B, as it allows you to start investing with a smaller capital.
Regulatory Compliance: Ensure the broker is regulated by relevant authorities, like the Securities and Exchange Commission (SEC) in the US and is compliant with Indian regulations for foreign exchange (LRS).
User Interface and Support: A user-friendly platform and good customer support can make your investing experience much smoother.
Step 3: Complete the Necessary Documentation and Fund Your Account
Once you've chosen a brokerage, you'll need to complete the account opening process. This typically involves:
Tip: Focus more on ideas, less on words.
KYC (Know Your Customer): You will need to provide proof of identity and address, such as your PAN card, Aadhaar card, passport, etc.
Fund Your Account: You'll need to transfer money from your Indian bank account to your brokerage account. This involves converting Indian Rupees (INR) to US Dollars (USD). This is done through the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI), which has a limit on the amount of money an Indian resident can remit abroad in a financial year.
Be sure to check the current LRS limit and all the associated foreign exchange rules and taxes.
Step 4: Search for the Stock and Place Your Order
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Now for the exciting part!
Log in to your brokerage account.
Use the search bar to find Berkshire Hathaway. Remember the ticker symbols: BRK.B for Class B shares and BRK.A for Class A shares.
Analyze the stock's performance and current price. Don't just jump in! Check the historical data, news, and financial reports. While Warren Buffett's philosophy is long-term, it's always wise to be informed.
Decide on your investment amount. Based on your financial goals and risk tolerance, determine how many shares you want to buy. If your broker offers fractional shares, you can simply input the amount you want to invest.
Choose your order type:
Market Order: This will execute your order at the best available market price immediately. This is simple but doesn't give you control over the price.
Limit Order: This allows you to set a specific price at which you are willing to buy. Your order will only be executed if the stock's price reaches that limit. This gives you more control.
Step 5: Monitor Your Investment and Think Long-Term
Once your order is executed, you are officially a Berkshire Hathaway shareholder! Congratulations!
Tip: Let the key ideas stand out.
Monitor your portfolio periodically, but remember the core principle of Warren Buffett's investing philosophy: long-term investing.
Read the annual shareholder letter. Warren Buffett's annual letter to shareholders is a treasure trove of wisdom and insights. It's a must-read for any Berkshire Hathaway investor.
Don't panic about short-term fluctuations. Berkshire Hathaway is a conglomerate with a diverse portfolio of businesses. The value of your investment is tied to their long-term growth, not day-to-day market volatility.
Related FAQ Questions
Here are 10 quick answers to some frequently asked questions about investing in Berkshire Hathaway:
How to choose between Berkshire Hathaway Class A and Class B shares? Choose Class B (BRK.B) unless you have a massive amount of capital and want significant voting rights. The Class B shares are designed for the average investor and offer the same exposure to the underlying business.
How to find the ticker symbol for Berkshire Hathaway stock? The ticker symbol for Class A is BRK.A, and the ticker symbol for Class B is BRK.B.
How to know if Berkshire Hathaway is a good investment for me? Berkshire Hathaway is a diversified conglomerate, so it offers broad exposure to the US economy. It's a good fit for investors with a long-term horizon who believe in the value-investing philosophy and want to invest alongside a proven management team.
How to invest in Berkshire Hathaway if I am in India? You need to open an account with a brokerage that allows you to invest in US stocks, whether it's an Indian broker with a US platform or a direct international brokerage.
QuickTip: A careful read saves time later.
How to convert INR to USD for investing in US stocks? You can use your brokerage's currency conversion services, which typically utilize the LRS framework, to transfer funds from your Indian bank account in INR and have them converted to USD.
How to attend the Berkshire Hathaway Annual Meeting? Both Class A and Class B shareholders are entitled to attend the legendary annual meeting in Omaha, Nebraska. You'll need to register and follow the instructions provided by Berkshire Hathaway.
How to know the current price of Berkshire Hathaway shares? You can check the live stock price on any financial news website, a stock market app, or your brokerage platform by searching for BRK.A or BRK.B.
How to understand Warren Buffett's investment philosophy? Warren Buffett and his late partner Charlie Munger focused on buying great companies at a fair price for the long term. They look for businesses with strong competitive advantages, excellent management, and a straightforward business model.
How to diversify my portfolio if I invest in Berkshire Hathaway? While Berkshire Hathaway is highly diversified in its holdings, it is still a single company. You can diversify your portfolio by investing in other stocks, ETFs, mutual funds, and asset classes that are not directly held by Berkshire.
How to get started with a small amount of money? Look for brokerage platforms that offer fractional shares of US stocks. This allows you to invest as little as a few dollars and still own a portion of a Berkshire Hathaway Class B share.
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