BRK.B

What is Berkshire Hathaway?

If you're interested in investing, surely you've heard of Warren Buffet. Often referred to as the “Oracle of Omaha,” Buffet is considered one of the world’s greatest investors, leading one of the world’s most successful companies: Berkshire Hathaway.

Based in Omaha, Nebraska, this diversified multinational holding company was originally a failing textiles business, taken over by Warren Buffet in 1965. Since then, with Buffet as its chairman and CEO, Berkshire Hathaway has bought or taken significant holdings of freight rail, flight services, utilities and electricity, media, real estate, manufacturers, retailers, confectionary and even technology companies.

BRK.A vs BRK.B: What is BRK.B?

Until 1996, Berkshire Hathaway only offered shareholders a single class of stock, known today as BRK.A. At the time, the BRK.A stock price was in the vicinity of US$30,000 per share. 

By January 2022, almost 26 years later, BRK.A reached a high of over US$485,000. BRK.A is easily the most expensive stock in the world and buying a single share is inaccessible to the majority of retail investors.

BRK.B is the lower cost option for owning a piece of Berkshire Hathaway’s pie. Since January 2022, the BRK.B stock price has been sitting a little above US$300.

What stocks are in BRK.B?

Berkshire Hathaway currently owns positions in 50 companies, the majority of which are U.S. based. Some of the largest positions include Apple (AAPL), Bank of America (BAC), Coca Cola (KO), Kraft Heinz (KHC), Chevron (CVX), General Motors (GM), Itochu Corporation and Mitsubishi.

Berkshire Hathaway’s newest positions include Activision Blizzard (ATVI), Nu Holdings Ltd. (NU) and Liberty Media (FWONA) which owns a controlling interest in Formula One Group.

For a complete list of Berkshire Hathaway’s holdings, click here.

Does BRK.B pay dividends? 

No, BRK.B does not pay any dividends despite having almost US$150b of cash. 

Warren Buffett is famous for preferring to reinvest cash in companies he already controls, buying back Berkshire stock and making new acquisitions. His purpose is to create more long-term value for Berkshire Hathaway shareholders.

When did BRK.B start trading?

BRK.B began trading on 9th May 1996.

Will BRK.B split again?

Since BRK.B began trading in 1996, it has only had one 50-1 split (21 January 2010). 

Berkshire Hathaway has not announced any plans for BRK.B to have a stock split again.

Is BRK.B a good stock to buy? 

Berkshire Hathaway’s revenue has grown consistently for 50 years. The company currently has close to US$150b of cash on its books.

BRK.B may be a good purchase for investors seeking to add a company with a strong track record and exposure to a diversified portfolio of businesses and holdings.