Berkshire Hathaway: Understanding the Differences Between Class A and Class B Shares

The Stratospheric Class A Stock

Berkshire Hathaway Class A shares, renowned for their astronomical price, have captivated investors for decades. This legendary stock offering, initially issued by the company, has become a symbol of wealth and investment prowess.

Class A vs. Class B Shares

While both Class A and Class B shares represent ownership in Berkshire Hathaway, they possess distinct characteristics:

• Price: Class A shares trade at a significantly higher price than Class B shares.
• Value: One Class B share (BRKB) is equivalent to approximately 1/1500th of a Class A share.
• Voting Rights: Class A shareholders have one vote per share, while Class B shareholders have one vote for every 1500 shares they own.
• Dividend Payments: Both classes of shares receive identical dividend payments.

Choosing the Right Class

When considering investing in Berkshire Hathaway, investors must decide between Class A and Class B shares. The choice hinges on the desired level of investment and voting power:

• Class A Shares: Suitable for investors seeking prestige and long-term capital appreciation, despite the higher cost.
• Class B Shares: Ideal for investors prioritizing affordability without compromising dividend income or a modest level of voting influence.

Conclusion

Whether investing in Berkshire Hathaway's Class A or Class B shares, investors gain exposure to one of the most iconic and successful companies in the world. By understanding the key differences between the two classes, investors can make an informed decision that aligns with their investment objectives.