How to buy Berkshire Hathaway stock—7 steps to invest
Of the many legendary investors on Wall Street, Warren Buffett is arguably the best-known and the most successful. With a net worth above $140 billion¹, it's clear the "Oracle of Omaha" knows a thing or two about picking profitable companies. Luckily for those who don't have this intuitive expertise, there's a simple way to bring Buffett into a portfolio: Buy Berkshire Hathaway stock.
This former textile mill has become one of the most successful long-term holding companies with exposure to many businesses in various sectors. Anyone interested in taking a page from Buffett's playbook should learn how to buy Berkshire Hathaway stock, whether it's a good fit, and the differences between Class A and B shares.
How to buy Berkshire Hathaway stock
As one of the largest US companies and a member of the S&P 500 index, Berkshire Hathaway is readily available on many brokerage platforms. Chances are, if your broker offers US-based stocks, you'll have no issue finding Class A and B shares for Berkshire Hathaway.
- 1.
Choose a reputable brokerage. First, sign up for a brokerage that offers shares for American companies like Berkshire Hathaway. As you review different options, compare their reputation, fee schedules, and bonus features like retirement accounts to decide which is the best fit for your goals.
- 2.
Fund your trading account. Many brokerages let you link a bank account with a third-party service like Plaid and send ACH transfers for free. However, you may also be able to transfer money using other methods, including a debit card or fintech app like PayPal.
- 3.
Search for Berkshire Hathaway. Depending on the type of share you want, you can use one of two tickers associated with Berkshire Hathaway: "BRK-A" for Class A shares and " BRK-B" for Class B shares.
- 4.
Choose between Class A versus B shares. Unless you're an institutional client or high-net-worth individual, chances are you'll be more interested in Class B shares. While both of these shares give price exposure to Berkshire Hathaway, BRK-B is far less expensive and easier to add to a portfolio.
- 5.
Enter your number of shares. Brokers may require investors to buy whole shares of Berkshire Hathaway, but some platforms offer fractional shares. Decide how much exposure you want to this company by selecting an amount of stock above the minimum threshold.
- 6.
Use a market or limit order. To get Berkshire Hathaway in your account as fast as possible, use a "market order" to fill immediately. However, if you'd like more precision over your trade, you could specify a desired share price with a limit order.
7. Confirm the trade and monitor performance. After reviewing any applicable fees, you can confirm your buy order and watch as Berkshire Hathaway appears in your portfolio. Now, you can monitor how well your investment performs and adjust as needed.
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Berkshire Hathaway Class A vs B shares
Initially, Warren Buffett only offered one share for those interested in investing in Berkshire Hathaway. Today, however, investors can choose between the original Class A shares or the more recent — and more affordable — Class B shares. So, what gives?
There are a few reasons behind this separation. First, due to his long-term investment mindset, Warren Buffett wasn't a fan of splitting the original shares, as this might lead to an influx of speculative short-term traders. Also, Buffett wanted to prevent unit trusts that would package Berkshire Hathaway shares and charge high fees. By introducing lower-priced Class B shares in the 1990s, he provided a more direct and affordable way for smaller investors to buy Berkshire Hathaway while avoiding a stock split and retaining original Class A investors.
| Features | Berkshire Hathaway Class A (BRK-A) | Berkshire Hathaway Class B (BRK-B) |
|---|---|---|
| Price per share | Significantly higher than Class B ($680,000 at the time of writing). | More affordable ($450 at the time of writing). |
| Voting Rights | 1 vote per share. | 1/10,000th of a vote per share |
| Convertibility | Convertible to Class B shares at a 1:1,500 ratio | Can't convert to Class A |
| Liquidity | Lower liquidity and trading volume. | Higher trading volume and liquidity thanks to accessibility. |
| Stock Splits | Avoids splits to preserve exclusivity. | Can be split. Last split was in 2010 (50-to-1). |
About Berkshire Hathaway, Inc.
The origins of Berkshire Hathaway go back to the 1830s with the Valley Falls Company in Rhode Island. This textile mill eventually merged with Berkshire Manufacturing in 1955 to take on the name "Berkshire Hathaway" we know today. However, it wasn't until 1965 that this company became an investment powerhouse when Warren Buffett took control and used it as a holding company for various investments. Today, Berkshire Hathaway holds a wide range of businesses, including GEICO, Dairy Queen, and Duracell, as well as significant stakes in companies like Coca-Cola, Apple, and Kraft-Heinz.
Is Berkshire Hathaway a good stock to buy?
Between the start of 2014 and the end of 2024, Berkshire Hathaway's Class B shares have grown from $116 to $435, which represents a 275% gain. Compared with the S&P 500's rise of about 200%2 within the same timeframe, Berkshire Hathaway has performed slightly better than the broader market.
While there's no guarantee Berkshire Hathaway could continue outperforming the market, it has become one of America's most valuable companies3 and has a "blue-chip" reputation. Investors with a long-term time horizon interested in safety and steady growth are usually most interested in Berkshire Hathaway shares.
Eric Esposito is a freelance contributor on MoneyWise with an interest in financial markets, investing, and trading. In addition to MoneyWise, Eric’s work can be found on financial publications such as WallStreetZen and CoinDesk. When not researching the latest stock market trends, Eric enjoys biking, walking his dog, and spending time with family in Central Florida. Eric holds a BA in English from Quinnipiac University.
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