Berkshire Hathaway's Two Share Classes: A Deep Dive

BRKA vs. BRKB: The Price Differential

Berkshire Hathaway has two distinct share classes: BRKA and BRKB. The primary difference between the two classes lies in their price points. BRKA, often referred to as "elite shares," currently trades at a staggering price of over $500,000 per share, putting it out of reach for most retail investors. On the other hand, BRKB shares are much more accessible, trading at around $348 per share.

The Advantages of BRKA

While BRKA shares come with a hefty price tag, they offer significant advantages. BRKA shareholders have one vote per outstanding share, granting them more direct influence in the company's decision-making processes compared to BRKB shareholders.

The Benefits of BRKB

BRKB shares, despite their lower voting power, present their own set of advantages. Their affordability makes them accessible to a broader range of investors. Additionally, BRKB shareholders benefit from the same dividend payments as BRKA shareholders, allowing them to participate in the company's financial success.

Conclusion: Understanding BRKA and BRKB

Berkshire Hathaway's BRKA and BRKB share classes offer distinct options for investors based on their financial capabilities and voting preferences. While BRKA shares command a significant premium, they confer greater voting power, making them an attractive choice for shareholders seeking direct involvement in the company's governance. BRKB shares, with their lower cost and equivalent dividend payments, cater to a broader audience, enabling investors to participate in the growth of this iconic investment conglomerate.