Berkshire Ha𓂃thaway Class A vs. Class B Shares: An Overview

Investors interested in buying shares of Warren Buffett’s Berkshire Hathaway Inc. behemoth have two options: Class A stock (BRK.A) or Class B stock (BRK.B). Class B shares offer a smaller slice🧔 of the company at a correspondingly small price p༺er share.

On April 22, 2025, the company’s Class A shares closed at an eye-watering $780,000 per share. The Class B shares closed at $520.79 on the same day.

Berkshire History and the Intr🍸oduction of Class B Shares

Berkshire Hathaway was content with its highly valued single class of stock. But the market demanded a lower-priced nibble at the Berkshire pie, at a time when the shares were trading for about $32,000.

In 1996, Chief Executive Officer 澳洲幸运5开奖号码历史查询:Warren Buffett and the board responded by issuing 517,500 shares of Class B shares. This allowed investors to buy shares for 1/30th of the price (and the equity stake) of a 澳洲幸运5开奖号码历史查询:Class A share of stock.

A 50-to-1 澳洲幸运5开奖号码历史查询:stock split in 2010 sent the ratio to 1/1,500th, which means each share of a Class A common stock was convertible to 1,500 shares of Class B common stock.

Class B shares carry correspondingly lower 澳洲幸运5开奖号码历史查询:voting rights as well. 澳洲幸运5开奖号码历史查询:Class B shares now carry 1/10,000th of the voting power of Class A shares.

Buffett marketed Class B shares as a long-term investment and an open-ended offering to prevent 澳洲幸运5开奖号码历史查询:volatility as a result of supply concerns.

Why 2 Share Classes?

Class B shares were introduced to allow individual investors to purchase the stock directly instead of buying a sliver of a share through unit trusts or 澳洲幸运5开奖号码历史查询:mutual funds that mirror Berkshire Hathaway’s holdings.

Buffett explained the action in 𒊎his 1996 annual letter to shareholders:

“As I have told you before, we made this sale [of Class B] in response to the threatened creation of unit trusts that would have marketed themselves as Berkshire look-alikes. In the process, they would have used our past, and definitely non-repeatable, record to entice naïve small investors and would have charged these innocents high fees and commissions.”

If the stock was left in the hands of 澳洲幸运5开奖号码历史查询:unit trusts, “Berkshire would have been burdened with both hundreds of thousands of unhappy, indirect owners (trust holders, that is) and a stained reputation.”

Key Differences

Buffett insists that Class A shares will never undergo a 澳洲幸运5开奖号码历史查询:stock split. He believes the high share price attracts like-minded investors focused on long-term profits rather than on short-term price fluctuations.

Along with being more accessible to retail investors, Class B shares give investors some flexibility. If an investor owns just one share of Class A and needs som🥂e cash, the only option is to sell that single share, even if its price far exceeds the amount of money they need.

Class B also provides a potential 澳洲幸运5开奖号码历史查询:tax benefit: The lower price means that a moderate amount of Class B stock can be transferred to family members without triggering the gift tax, which is owed on gifts valued at more than $19,000 per recipient as of 2025.

One final difference is that Class A shares can be 澳洲幸运5开奖号码历史查询:converted into an equivalent amount of Class B shares anytime a Class A shareholder wishes to do so. The 澳洲幸运5开奖号码历史查询:conversion privilege does not exist in reverse. Class B shareholders can only convert their holdings to Class A by selling their Class B shares and then buying the equivalent in Class A.

Advantages and Disadvaꩵntages of Berk🀅shire Hathaway Class A and Class B Shares

Given the astronomical price of Class A shares, most investors do not have much of an option if they want to invesꦬt in Berkshire Hathaway.

For the lucky few who do have t𓄧hat option, there are a few pros and cons of each t♏o keep in mind.

Advantages

Class A shares historically tend to slightly outperform Class B shares, though this💞 is by no means a guaranteed outcome in the future.

Class A shares offer a long-term investment, and basically 澳洲幸运5开奖号码历史查询:no chance of a stock split down the line.

Investors looking for flexibility might prefer to invest in Berkshire’s Class B shares. They can add to their stakܫe or trim it from time to time without dealing in the six-figure numbers that a single Class A share represents.

Disadvantages

The most obvious drawback to investing in Berkshire Hathaway is the price of the Class A share.♒ It’s simply beyond the means of the average in🍎vestor.

Even a mutual fund or an 澳洲幸运5开奖号码历史查询:exchange-traded fund (ETF) that owns Class A sh𝔉ares won’t get you the eq൩uivalent of a single share of this stock without a massive investment.

The Bottom Line

Berkshire Hathaway’s Class A shares are among the world’s most coveted stocks. But their hefty price tag p🀅uts them well out of the reach of the average investor.

If you’re looking for a way to reap the benefits of investing in the co🐓mpany, consider Berkshire’s Class B shares. As with any other investment venture, make sure they align with your goals and investment philosophy.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5开奖号码历史查询:warranty and liability disclaimer for more info.