Your Ultimate Guide to Investing in Berkshire Hathaway Stock
Hello, future investor! Have you ever dreamt of owning a piece of a company run by the legendary Warren Buffett, the "Oracle of Omaha" himself? Do you want to be a shareholder in one of the world's most successful and diversified conglomerates? You've come to the right place. Investing in Berkshire Hathaway isn't just about buying a stock; it's about buying into a philosophy of value, long-term growth, and disciplined investing.
This comprehensive, step-by-step guide will walk you through everything you need to know, from understanding the different share classes to placing your first trade. Let's get started on your journey to becoming a Berkshire Hathaway shareholder!
Step 1: Discover Which Class of Stock is Right for You
Before you do anything else, the very first and most crucial step is to understand that Berkshire Hathaway has two distinct classes of stock: Class A (BRK.A) and Class B (BRK.B). This is where many prospective investors get confused, so let's clear it up right away.
Berkshire Hathaway Class A (BRK.A): The Original and the Elite
This is the original stock, the one that Warren Buffett has famously never split.
Its price per share is astronomically high. As of June 27, 2025, one share of BRK.A costs around $729,000 USD. Yes, you read that right.
Each share of BRK.A comes with full voting rights. If you own one, you get one vote.
This class of stock is primarily held by long-term institutional investors and wealthy individuals.
Berkshire Hathaway Class B (BRK.B): The Accessible Choice
This class was created in 1996 to make the stock more accessible to the average retail investor and prevent the creation of "copycat" mutual funds.
The price is a fraction of the Class A shares. As of June 27, 2025, a single share of BRK.B is approximately $485 USD.
The voting rights are significantly less. Each BRK.B share has 1/10,000th of the voting rights of a Class A share.
BRK.B shares can be converted into BRK.A shares (at a ratio of 1,500 BRK.B shares to one BRK.A share), but BRK.A shares cannot be converted back to BRK.B. This is a one-way street!
For most individual investors, the BRK.B shares are the only practical option. They offer the same economic exposure to the company's performance, just at a manageable price point.
So, the first question you need to ask yourself is: Which class is for me? If you're a retail investor with a modest capital, the answer is almost certainly BRK.B. Now that you've made that decision, let's move on to the next steps.
Step 2: Open and Fund a Brokerage Account
You cannot buy Berkshire Hathaway stock directly from the company. You need to use a brokerage account. Think of a brokerage account as your personal gateway to the stock market.
Sub-heading: Choosing the Right Brokerage
Choosing a brokerage is a critical decision. Here's what to look for:
Reputation and Security: Choose a reputable broker that is regulated and offers protection for your funds, like the FSCS (in the UK) or SIPC (in the US).
Fees and Commissions: Look for a broker with low or zero-commission trading on US stocks. This can save you a significant amount of money over time.
Fractional Shares: This is a big one! Given that even BRK.B can be a bit pricey for some, many modern brokerages now offer the ability to buy fractional shares. This means you can invest a specific dollar amount (e.g., $100) and own a fraction of a share, rather than having to buy a whole share. This is an excellent feature for new investors.
User-Friendly Platform: The platform should be easy to navigate, with clear information and tools to help you place trades and monitor your investments.
Once you've chosen a broker, you'll need to complete the account opening process, which usually involves providing identification (like your Aadhaar and PAN card in India) and proof of address.
Sub-heading: Funding Your Account
After your account is approved, you need to deposit funds. Most brokers allow you to link your bank account for free and instant transfers. You can also use other methods like debit cards or wire transfers. Make sure you have enough funds to cover your desired investment and any potential fees.
Step 3: Research and Due Diligence (The Buffett Way)
Before you hit the "buy" button, it's essential to do your homework. This is a core principle of Warren Buffett's investing philosophy.
Sub-heading: Analyze Berkshire Hathaway's Fundamentals
While you don't need to be a financial analyst, it's wise to look at the company's financial health. You can find this information in Berkshire Hathaway's annual and quarterly reports on their investor relations website. Pay attention to:
Revenue and Earnings: Look at the company's top-line revenue and net income to see if it's growing.
Balance Sheet: Check its assets, liabilities, and, most importantly, its massive cash pile. As of a recent report, Berkshire's cash, cash equivalents, and short-term investments stood at a record $334.2 billion, giving it immense flexibility for future acquisitions.
Portfolio Holdings: Berkshire Hathaway's portfolio is a who's who of American business. It's fascinating to see what companies they hold, as it gives you insight into their investment strategy. Their largest holdings typically include Apple, Bank of America, American Express, and Coca-Cola.
Sub-heading: Understand the Business Model
Berkshire Hathaway is not a single company; it's a conglomerate. It owns a diverse collection of businesses, including insurance companies like GEICO, manufacturing businesses like Duracell, and even a railroad, BNSF. The stock's performance is tied to the collective success of these diverse operations, not just a single product or service.
Step 4: Place Your Order
You've done your research, you've funded your account, and now you're ready to buy!
Sub-heading: Search for the Stock
In your brokerage's platform, use the ticker symbol to find the stock.
For Class A: BRK.A
For Class B: BRK.B
Sub-heading: Choose Your Order Type
You'll typically have two main options:
Market Order: This is the simplest type. You're telling the broker to buy the stock immediately at the best available market price. This is good if you want to buy quickly and aren't too concerned about a few cents' difference.
Limit Order: This gives you more control. You set a specific price you're willing to pay. The order will only be executed if the stock's price falls to or below your limit price. This is useful if you have a target entry price in mind.
Sub-heading: Specify the Amount
Decide how much you want to invest. You can choose to buy a certain number of shares or a specific dollar amount (if your broker supports fractional shares). For example, you can buy 1 share of BRK.B or invest $500 in BRK.B.
Step 5: Monitor and Hold (The Long-Term Perspective)
Once your order is executed, congratulations! You are now a shareholder in Berkshire Hathaway. The final and most important step is to remember the core philosophy behind this investment: patience and a long-term horizon.
Don't panic about daily fluctuations. The price of the stock will go up and down. Focus on the long-term performance of the underlying businesses.
Stay informed. Follow the company's news and financial reports, but resist the urge to trade based on short-term market noise.
Consider a fund instead. If you find individual stock picking too risky or complex, you can also invest in an S&P 500 index fund or ETF. Since Berkshire Hathaway is a major component of the S&P 500, you'll be indirectly investing in it along with 499 other top US companies.
10 Frequently Asked Questions about Investing in Berkshire Hathaway
How to open a brokerage account in India to buy US stocks? You can open an account with a brokerage that provides access to US markets. You will need to provide your PAN card, Aadhaar, and other KYC documents. Many Indian brokers now offer this service, and there are also international brokers that cater to Indian residents.
How to choose between BRK.A and BRK.B shares? For most individual investors, the BRK.B shares (BRK.B) are the only practical and affordable option. They track the performance of the company just like the Class A shares but are much more accessible.
How to buy Berkshire Hathaway stock with a small amount of money? Look for a brokerage that offers fractional shares. This allows you to invest a specific dollar amount, such as $50 or $100, and own a portion of a share, even if you can't afford the full share price.
How to find the current price of Berkshire Hathaway stock? You can find the real-time stock prices for BRK.A and BRK.B on major financial news websites like Google Finance, Yahoo Finance, or your brokerage's platform by searching for their ticker symbols.
How to know if Berkshire Hathaway pays dividends? Berkshire Hathaway has a long-standing policy of not paying dividends. Warren Buffett believes that the company can generate better returns by reinvesting its earnings back into its businesses and acquisitions.
How to check Berkshire Hathaway's financial reports? You can find all of Berkshire Hathaway's official financial reports, including annual reports (10-K) and quarterly reports (10-Q), on their investor relations website, which is publicly available.
How to understand the concept of a stock split? A stock split increases the number of shares in a company but does not change the total value of your holdings. For example, a 2-for-1 split would give you two shares for every one you own, but each new share would be worth half the price of the original.
How to convert BRK.B shares to BRK.A shares? You can convert 1,500 shares of BRK.B into one share of BRK.A. This conversion is handled through your brokerage. However, it is important to remember that this is a one-way conversion; you cannot convert BRK.A back to BRK.B.
How to analyze if Berkshire Hathaway stock is a good investment for me? Investing is a personal decision. Consider your financial goals, risk tolerance, and investment horizon. Berkshire Hathaway is generally considered a conservative, long-term investment. It's a good fit for investors who believe in a diversified portfolio of high-quality businesses and trust in the company's leadership.
How to know if there will be a stock split for BRK.A? It is highly unlikely. Warren Buffett has consistently stated that he has no intention of splitting the Class A shares. The creation of the Class B shares was a way to provide accessibility without splitting the original stock and changing its character.
