brk a vs brk b

BRK.A vs. BRK.B

What if a single share of stock could buy a brand-new Ferrari, with plenty of cash left over? It exists, and it’s Berkshire Hathaway’s Class A share (BRK.A), answering the question of why is BRK.A stock so expensive with pure sticker shock.

But here’s the secret: you can invest in that exact same company for about the price of a nice dinner out. That’s the Class B share (BRK.B), and it’s not a knock-off or a “worse” version of the stock; it’s just different by design.

This guide explains the key differences between BRK.A and BRK.B in price and influence, showing you how to invest in Berkshire Hathaway without any confusing jargon.

Why Does a Cheaper “B” Share Even Exist? The Story Behind BRK.B

As Berkshire Hathaway’s success grew over the decades, so did its stock price. By the mid-1990s, the cost of a single A-share had climbed so high that it was out of reach for almost everyone. This created a problem that Warren Buffett wasn’t happy about: investment firms started popping up to exploit this.

These firms would buy a few of the expensive A-shares and then sell tiny, sliced-up pieces to small investors—but they charged hefty fees and commissions for the service. Buffett saw this as a direct rip-off of people who simply wanted to invest in his company. He wanted to provide a fair, low-cost way for anyone to join in.

Instead of doing a traditional stock split, Buffett created something new: the Class B share. It was designed from day one to give regular investors a way to buy a piece of Berkshire Hathaway directly, without paying unnecessary fees to a middleman. Think of it as Buffett opening a side door to the party, just for you.

The Price & Ownership Puzzle: Are You Buying the Same Pizza?

So what is the actual difference between a share that costs more than a house and one that costs a few hundred dollars? Does buying the cheaper BRK.B share mean you’re getting a “worse” deal or a different company? The short answer is no, and the benefits of Berkshire Hathaway Class B stock become clear when you think of it like this.

The easiest way to understand the share structure is with a simple pizza analogy. Think of Berkshire Hathaway as one giant, delicious pizza. A Class A share (BRK.A) is a massive, full-sized slice. It represents a significant chunk of ownership.

In contrast, a Class B share (BRK.B) is the same pizza, but it’s a much smaller, bite-sized piece. To be precise, one Class A share is economically equivalent to 1,500 Class B shares. The B shares were created by slicing up the big A-share portion into affordable bites so more people could have a taste.

This means that whether you hold an A share or a B share, you own a piece of the exact same world-class portfolio of businesses. The economic value is perfectly proportional. But if you’re eating the same pizza, is there any other difference? Yes, and it has to do with power.

The Power Difference: Who Gets to Choose the Toppings?

Beyond the size of your slice, the most significant difference between BRK.A and BRK.B is about control. Extending our pizza analogy, when it’s time to decide on future toppings—which represent major company decisions—your ownership gives you a voice. This concept is what investors call “voting rights.”

In the Berkshire Hathaway share structure, however, not all voices carry the same weight. The power is intentionally concentrated in the Class A shares to ensure stable, long-term leadership, a hallmark of Warren Buffett’s strategy. The difference is staggering:

1 BRK.A share = 1 Vote
1 BRK.B share = 1/10,000th of a Vote

To put that in perspective, you would need to own ten thousand Class B shares just to have the same influence as someone holding a single Class A share.

For virtually every retail investor, this gap in voting rights is purely academic. Your goal is to benefit from the company’s financial success, not to run it from the boardroom. Because your economic ownership is proportional, this massive power difference is not a meaningful factor when choosing which Berkshire Hathaway stock to buy.

Your Burning Questions: Stock Splits and Converting Shares

This often leads people to wonder, “Why didn’t Warren Buffett just do a stock split on the A shares to lower the price?” His reasoning is a core part of the Berkshire philosophy. By keeping the price high, he aimed to attract serious, long-term investors who thought like business owners, not short-term traders trying to make a quick buck. The high price tag acts as a filter.

So, if you owned a valuable A share but needed cash without selling the whole thing, what could you do? Berkshire provides a one-way street for this. An owner can always convert a single BRK.A share into 1,500 BRK.B shares. However, this street does not go both ways; you can never convert BRK.B shares back into a BRK.A share.

Crucially, the act of converting an A share to B shares is generally not considered a taxable event in the U.S. Think of it like exchanging a $100 bill for one hundred $1 bills—you haven’t realized a profit, you’ve just changed the form of your holdings.

While the conversion itself isn’t a sale, remember that selling any of those newly acquired B shares for a profit absolutely is.

The Final Verdict: Which Berkshire Stock Is Right for You?

The six-figure price tag on Berkshire Hathaway’s Class A stock is no longer a mystery. BRK.A and BRK.B are simply two different doors into the exact same house, built for different types of investors.

Your decision comes down to this:

For Affordability & Accessibility: Choose BRK.B.
For Voting Power & Prestige: Choose BRK.A.

For nearly every individual, the Berkshire Hathaway B shares are the smart, practical path to ownership. Choosing BRK.B isn’t settling for less; it’s confidently claiming your piece of a legendary company.