Berkshire Hathaway Stock: Two Classes

Introduction

Berkshire Hathaway, the conglomerate led by Warren Buffett, has two classes of stock: Class A and Class B. The Class A shares are much more expensive than the Class B shares, but they also come with more voting rights.

The Differences Between Class A and Class B Shares

The main difference between Class A and Class B shares is the number of votes that each share carries. Class A shares have one vote per share, while Class B shares have only one-tenth of a vote per share. This means that Class A shareholders have more say in the company's decisions than Class B shareholders. Another difference between Class A and Class B shares is the price. Class A shares are much more expensive than Class B shares. As of May 29, 2023, Class A shares were trading at over $400,000 per share, while Class B shares were trading at around $265 per share.

Why Do Class A Shares Cost More Than Class B Shares?

There are a few reasons why Class A shares cost more than Class B shares. First, Class A shares have more voting rights than Class B shares. This means that Class A shareholders have more say in the company's decisions. Second, Class A shares are more liquid than Class B shares. This means that it is easier to buy and sell Class A shares than Class B shares.