Hello there! Are you ready to dive into the world of investing and learn about one of the most iconic companies in the world, Berkshire Hathaway? Excellent! Let's get started on this journey to understand exactly what it takes to invest in Warren Buffett's legendary company.
Step 1: Understand the Two Tiers of Berkshire Hathaway Stock
Before you even think about how much money you need, you must understand the unique stock structure of Berkshire Hathaway. This is the most crucial step and the one that will determine your investment path. Berkshire Hathaway offers two classes of stock, and they are vastly different.
Class A shares (BRK.A): This is the original stock, and it's famous for its astronomical price. As of late June 2025, a single Class A share is trading for over $730,000 USD. These shares come with full voting rights, giving the holder a say in the company's affairs. Warren Buffett has famously refused to split this stock, believing that its high price attracts long-term, like-minded investors who see themselves as owners, not just traders.
Class B shares (BRK.B): Introduced in 1996, these shares were created to make investing in Berkshire Hathaway accessible to a wider range of investors. They are a much more affordable alternative, trading for around $485 USD as of late June 2025. While they represent a smaller fraction of ownership and have limited voting rights (1/10,000th of a Class A share), their performance is closely tied to the Class A shares. They essentially give you the same exposure to the company's performance without the massive upfront cost.
So, the first question to ask yourself isn't "how much money do I need," but rather, "which class of stock am I interested in?" For the vast majority of retail investors, the answer will be the more affordable and accessible Class B shares.
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| How Much Money Do You Need To Invest In Berkshire Hathaway |
Step 2: Determine Your Investment Threshold
Now that you know about the two stock classes, let's talk about the money. The amount you need to invest depends on whether you can buy a whole share or if your brokerage offers fractional shares.
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Sub-heading: Investing in Whole Shares
If you are a high-net-worth individual or an institutional investor, you might be considering a whole Class A share. The price, as we've seen, is in the hundreds of thousands of dollars.
For the average investor, however, buying a whole Class B share is a much more realistic goal. With the price around $485 USD, you would need at least that much money, plus any brokerage fees.
Sub-heading: The Power of Fractional Shares
This is where the real accessibility comes in. The advent of fractional shares has revolutionized investing for beginners. Many modern brokerage platforms allow you to buy a fraction of a share, meaning you can invest in a company based on a dollar amount rather than the number of shares.
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So, for example, if you only have $50 or $100 to invest, and your brokerage supports fractional shares, you can still buy a slice of Berkshire Hathaway Class B. You will own a percentage of a share, and your investment will grow or shrink in value along with the full share.
This means that technically, you can start your investment journey with Berkshire Hathaway for as little as $1, depending on your brokerage's minimum investment amount for fractional shares.
Step 3: Choose Your Brokerage and Open an Account
You can't just send money directly to Warren Buffett (as much as we'd all like to!). You need a brokerage account to buy stocks.
Choose a reputable brokerage: Look for a brokerage that is well-regulated and offers a user-friendly platform. Check for their fee structure, minimum deposit requirements, and whether they offer fractional shares. Popular platforms in the US include Charles Schwab, Fidelity, and Public.com, many of which offer fractional share trading. If you are in India, platforms like INDmoney allow you to buy US stocks, including Berkshire Hathaway, in fractions.
Open and fund your account: The process is straightforward. You'll need to provide some personal information for KYC verification. Once your account is approved, you can link your bank account and transfer funds.
Look for the ticker: In your brokerage platform's search bar, you'll need to find Berkshire Hathaway using its ticker symbol.
For Class A shares, search for BRK.A
For Class B shares, search for BRK.B
Step 4: Place Your Order
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This is the moment of truth! Once you have found the ticker symbol, you'll need to decide on your order type and quantity.
Decide on your quantity: If you are buying whole shares, you'll enter the number of shares you want to buy. If you're using a fractional share platform, you'll enter the dollar amount you want to invest.
Choose your order type:
Market order: This is the most common type for beginners. It tells your broker to buy the shares at the best available price right now.
Limit order: This allows you to set a specific price you are willing to pay. The order will only execute if the stock price drops to your set limit. This is useful if you want more control over the price you pay.
Confirm and monitor: After reviewing the details, confirm your trade. The shares will appear in your portfolio, and you can now monitor your investment's performance.
Step 5: Hold for the Long Term
Warren Buffett's philosophy is all about long-term investing. He encourages people to buy companies for the long haul, thinking of themselves as business owners. Berkshire Hathaway does not pay dividends, so its returns are entirely based on the appreciation of the stock's value. This reinforces the idea of holding for years, even decades, to see the true power of compounding at work. The company prefers to reinvest its earnings back into its businesses and acquisitions, which has fueled its remarkable growth over time.
Remember, investing in stocks carries risks, and the value of your investment can go down as well as up.
10 Related FAQ Questions
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How to start investing in Berkshire Hathaway with a small amount of money? You can start investing in Berkshire Hathaway with a small amount of money by using a brokerage that offers fractional shares, allowing you to invest a specific dollar amount (e.g., $10, $50) instead of buying a whole share.
How to choose between Berkshire Hathaway Class A and Class B shares? Choose Class B shares (BRK.B) if you are a retail investor with a limited budget and want exposure to the company's performance. Choose Class A shares (BRK.A) if you are a high-net-worth investor who wants full voting rights and can afford the extremely high share price.
How to find a brokerage that allows me to buy fractional shares of BRK.B? Many popular online brokerages like Charles Schwab, Fidelity, and Public.com support fractional share trading. Search for "fractional shares" or "dollar-based investing" on their websites.
How to calculate the fractional share I will own? If you invest a dollar amount, the brokerage will automatically calculate the fraction of the share you own. For example, if you invest $100 and the share price is $500, you will own 0.2 units of the share (100/500).
How to convert Berkshire Hathaway Class A shares to Class B shares? Class A shares can be converted into Class B shares at any time. However, the reverse conversion is not possible, meaning you cannot convert Class B shares to Class A shares.
How to know if my investment in Berkshire Hathaway is performing well? You can monitor the performance of your investment by checking the current share price of BRK.B (or BRK.A) on your brokerage platform or financial news websites. You can compare the current price to your purchase price to see your profit or loss.
How to buy Berkshire Hathaway stock if I live in India? Indian investors can buy US stocks, including Berkshire Hathaway Class B shares, through platforms like INDmoney that facilitate international trading.
How to benefit from my Berkshire Hathaway investment since it doesn't pay dividends? Your benefit comes from the appreciation of the stock's price over time. As the company's value grows, the value of your shares increases, and you realize a profit when you sell your shares.
How to understand the difference in voting rights between the two classes? Each Class A share has one vote, while each Class B share has 1/10,000th of a vote. This structure ensures that the original shareholders and management, including Warren Buffett, retain control over the company.
How to learn more about Berkshire Hathaway's business? You can read the company's annual reports, shareholder letters written by Warren Buffett, and listen to the annual shareholder meetings. These resources provide deep insights into the company's philosophy and performance.
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