How to Buy Berkshire Hathaway (BRK-B) Stock
Many investors would like to invest like Warren Buffett and when they buy Berkshire Hathaway shares, they can. Learn how to become one of Berkshire Hathaway's shareholders and invest in BRK-B here.
This article focuses on how to buy specific securities, however, it is not a recommendation to invest in them and should not be taken as financial advice. Do your own research and make your own decisions, or even consider getting advice from a licensed financial adviser before investing.
- Berkshire Hathaway Inc. is one of the world’s biggest companies, presided by legendary investor Warren Buffett.
- The company has two classes of shares, BRK.A and BRK.B, which gives their holders different voting rights.
- Despite the difference in rights, the performance of BRK.A and BRK.B tend to be similar since they are shares of the same underlying company.
Warren Buffett is considered one of the most successful investors in the world, and most of his fame came from the performance of Berkshire Hathaway (BRK-A), a multinational conglomerate holding company based in Omaha, Nebraska. Buffett's investment firm bought enough shares to take control of Berkshire in 1965 and from 1970 onwards he has been the chairman and CEO. Learn more about the company and how you can become a shareholder in the company run by some of the world's best investors.
How to buy Berkshire Hathaway stock (BRK.B)
1. Find a stock trading platform
Open a brokerage account that offers access to buy U.S. stocks, like Stake, which will probably cover all your needs for a diversified portfolio. If you are looking for a low-cost broker, Stake is a great option offering competitive brokerage on all U.S. trades. Remember: future returns are uncertain, while costs are fixed. Lowering your costs will always help improve your investment returns.
2. Fund your account
Depending on the platform you chose, available funding methods will differ. The most common one is a bank transfer, but with Stake, we offer funding through debit/credit cards and other means like Apple and Google Pay. Stake also offers instant funding to speed up the process so you don’t miss any trading opportunities (fees apply). Once your account has been funded, you’re ready to invest in Berkshire Hathaway Class B stock.
3. Search for Berkshire Hathaway (BRK.B)
Enter the stock ticker BRK.B or company name when searching on the Stake app. Do your own research to ensure that buying Berkshire Hathaway stock is the right investment product for your own circumstances.
4. Choose an order type and buy $BRK.B stock
Sending a market order will buy the stock at any available price. However, your order might be filled for a higher price than you wished for, due to market impact and other liquidity issues.
If you want to make sure you do not overpay for the shares, you should use a limit order. A limit order will set the price for which you’re willing to buy the shares, and unless the current market price is lower than that, your order will not be executed. Remember, there’s a chance that your order will not be filled and the market could rally higher before you actually manage to get a hold of your shares.
5. Monitor your investment
It’s best not to monitor your investment portfolio every day, but you shouldn’t sleep on it either. Keep in touch with the latest earnings reports and utilise Stake Black to check price targets set by analysts of the biggest financial institutions to know whether it’s time to buy more BRK.B shares or if it’s time to close your position.
Gain access to shares like Berkshire Hathaway and more when you sign up to Stake.
Berkshire Hathaway stock overview
Berkshire Hathaway is a multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. The company owns a diverse range of businesses in various industries, including insurance, healthcare, railroad, finance, and manufacturing. Berkshire Hathaway is known for its long-term investments in multiple companies and its focus on long-term value creation. The company is also known for its unique business model and its leadership by the legendary investor Warren Buffett.
It was announced in May 2021 by Buffett himself, that when the time comes, Greg Abel will be his successor as CEO of Berkshire Hathaway.
Berkshire Hathaway share performance
Since its IPO in 1979 on the New York Stock Exchange, Berkshire’s shares are up an astounding 188,553%. Its all-time high was set in March 2022, when BRK.A reached US$544,389.26 per share and BRK.B reached US$362.10. Its longest drawdown happened between December 2007 and February 2013, when it fell over -54%. Currently, its market capitalisation is US$684b.
Berkshire Hathaway subsidiaries and holdings
Berkshire Hathaway is a conglomerate with a diverse range of subsidiaries and holdings. Some of its largest subsidiaries include GEICO, Duracell, and Dairy Queen. It also has significant holdings in companies such as Apple (AAPL), Coca-Cola (KO), and American Express (AXP). In addition to these companies, Berkshire Hathaway also owns many other subsidiaries and has investments in a wide range of industries.
See the Warren Buffett stocks that he handpicked to add to the Berkshire Hathaway portfolio
Berkshire Hathaway stock P/E ratio
Berkshire Hathaway’s current P/E ratio is 21.69. It’s 5y average is 11.44.
Berkshire Hathaway stock EBITDA
Berkshire Hathaway’s 2022 EBITDA (to the moment) is US$9.95b.
Does Berkshire Hathaway shares pay dividends?
Berkshire Hathaway does not pay dividends currently, as the board of directors believes the profits could be better used reinvested in the holding company, making new acquisitions.
What's the difference between BRK.A and BRK.B?
Berkshire Hathaway is a publicly-traded company, and its shares are divided into two classes: Class A and Class B. Class A shares, which are identified by the ticker symbol BRK.A, have more voting rights than Class B shares, which are identified by the ticker symbol BRK.B.
This means that holders of Class A shares have a greater say in the company's decisions and governance than holders of Class B shares. Additionally, Class A shares typically trade at a higher price than Class B shares, due to their increased voting rights and potential for greater returns.
Despite the two classes of shares, their returns should be extremely similar, since they both refer to shares in the same underlying company.
Has Berkshire Hathaway ever had a stock split?
BRK.B had a stock split of 50:1 in January 2010, but BRK.A has never gone through a stock split. And according to Warren Buffett, it never will, since the higher share price makes sure only investors aligned with the company’s mission are likely to become shareholders, investing for the long run.
Berkshire Hathaway FAQs
How much of Berkshire Hathaway does Warren Buffett own?
Warren Buffett is the majority shareholder and CEO of Berkshire Hathaway. As of December 2021, his ownership stake in the company is around 25.5%.
How many Berkshire Hathaway shares are there?
BRK.B has 1.47m shares outstanding as of today.