BRK A vs BRK B Key Comparisons

What if the “cheaper” version of Warren Buffett’s famous stock wasn’t a compromise, but actually the right choice for you? For most investors, it is—and understanding why starts with knowing what you’re buying. Berkshire Hathaway isn’t a company that makes one specific product; it’s what is known as a holding company.

Think of a holding company like a giant pizza. It doesn’t bake the pizza itself; it just owns all the different toppings, which are other, completely separate companies. The primary job of Warren Buffett, who runs Berkshire Hathaway, is to choose which businesses to add to this collection. This structure is the key to understanding the company’s value.

In practice, this means many of the Berkshire Hathaway businesses are brands you already know and use. You might be surprised to learn that when you invest in Berkshire, you’re owning a tiny piece of:

• GEICO car insurance
• Dairy Queen
• Duracell batteries
• See’s Candies

This collection of businesses is key to seeing why one share class might be a better fit than the other.

BRK.A vs. BRK.B: The $600,000 Price Difference Explained

For decades, the cost to buy one share of Berkshire Hathaway soared, eventually reaching a price tag resembling a house down payment. Warren Buffett famously resisted a traditional stock split, which would have lowered the price, because he wanted to attract long-term, committed shareholders. However, this strategy also locked out everyday investors. To solve this, the company created Class B shares in 1996, often called “Baby Berkshires,” specifically to give more people a way to invest alongside him.

To understand the price difference, think of owning Berkshire Hathaway like owning a giant pizza. The original Class A share (BRK.A) is one enormous, full-sized slice. The Class B share (BRK.B) is that exact same slice, but it has been neatly cut into 1,500 smaller, bite-sized pieces. Because of this, the price of a B-share is designed to be about 1/1500th of the price of an A-share. You’re buying a piece of the very same pizza, just in a much more affordable portion.

This means that whether you hold a single A-share or the equivalent 1,500 B-shares, you own the exact same amount of the underlying business. Your fractional ownership of assets like GEICO, Dairy Queen, and BNSF Railway is economically identical. The performance of the company will affect both share classes in the same way; if the value of the whole pizza goes up, the value of every slice—big or small—goes up with it.

The fundamental difference between Berkshire Hathaway Class A and B stock isn’t about the quality of the investment, but about accessibility and the size of your stake. It’s the company’s way of offering both a giant slice and a small bite. But if the underlying ownership is the same, does that mean B-share owners get the same say in how the company is run?

Do BRK.B Owners Get a Say? A Simple Guide to Voting Rights

If the economic ownership is the same, does that mean a BRK.B owner gets an equal say in how the company is run? The short answer is no, and this is the second major difference between the two stocks. Think of shareholder voting rights like having a ballot in a city election; it gives you a formal voice on major company decisions, such as who sits on the board of directors.

This is where the two share classes diverge dramatically. A single Class A share provides its owner with one full, powerful vote. By contrast, a Class B share was intentionally designed to carry very little influence, providing only 1/10,000th of the voting power of a single A-share. This structure ensures that control over Berkshire Hathaway’s direction remains with its largest, most committed long-term investors, a key part of Warren Buffett’s original philosophy.

For the vast majority of people, this difference in voting power is purely academic. Influencing a company the size of Berkshire requires accumulating a colossal number of votes, a scale typically only achievable by massive institutional funds. Whether you hold one A-share or a handful of B-shares, your individual vote will not change the outcome of a corporate decision. Your financial success is tied to the company’s performance, not your voting ballot.

So, while the difference in voting rights is massive on paper, it has no practical impact on your investment’s value. Your economic journey is identical. However, there is one final difference that does affect the experience of everyday investors: how easily can you buy or sell the shares you own?

Which Stock Is Easier to Buy and Sell? A Look at Liquidity

The ease with which you can buy or sell an asset is a concept called liquidity. Think of it like selling a car. A popular, affordable model like a Honda Civic will have thousands of potential buyers at any given moment, making it highly liquid—you can sell it quickly at a fair price. A rare, multi-million-dollar classic car, however, has a very small pool of buyers. It’s illiquid, meaning finding a buyer and agreeing on a price can take a lot of time.

This difference in liquidity comes down almost entirely to price. Because BRK.B shares are affordable for a much wider audience, millions of them are bought and sold every single day. This creates a bustling, active market. In contrast, the six-figure price tag of a single BRK.A share means the number of daily trades is far, far lower. It’s a much quieter, more exclusive marketplace.

This is where the benefits of owning BRK.B shares really shine for most people. The high liquidity ensures that when you decide to invest, you can do so instantly. More importantly, if you need to sell your shares, you can be confident there will be a buyer ready and waiting. This accessibility is a crucial advantage, making the B-share the practical vehicle for the journey.

Why Hasn’t BRK.A Ever Split? (And Can You Swap Your Shares?)

It’s a fair question. If a high price makes a stock hard to trade, why not just perform a stock split? A split is like swapping a $100 bill for two $50s—the total value is the same, but the individual pieces are smaller and easier to use. Most companies do this to keep their share price in an accessible range. Warren Buffett, however, has famously refused to split the A-shares.

For Buffett, the astronomical price of BRK.A is a feature, not a bug. He has always wanted to attract investors who think like owners and intend to be long-term partners in the business, not short-term speculators jumping in and out. The high cost of entry serves as a filter, discouraging rapid trading and encouraging a mindset focused on decades, not days. It’s a core part of the Berkshire Hathaway culture.

However, Berkshire does provide a crucial escape hatch for A-shareholders needing flexibility. An owner of a single BRK.A share can convert it into 1,500 BRK.B shares at any time. This gives them the option to sell off smaller pieces of their investment—like breaking a large gold bar into smaller coins—without having to sell their entire, high-value position at once.

Crucially, this is a one-way street. While you can convert BRK.A to BRK.B, you can never bundle B-shares to create an A-share. This rule protects the original philosophy, preventing anyone from accumulating cheaper shares to gain the superior voting power of the A-class. It perfectly balances Buffett’s goal of a stable, long-term ownership base with the practical needs of everyday investors.

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

The six-figure price tag on a share of Berkshire Hathaway may seem like a locked door, but the Class B share is the key that opens it. The choice is not between a premium and a discount product, but between a full-size slice of the pie and a more accessible, bite-sized piece from the exact same recipe.

To make the choice even clearer, here’s how the two shares stack up side-by-side:

| Feature | Class A (BRK.A) | Class B (BRK.B) |
| :— | :— | :— |
| Price | ~$600,000+ | ~$400+ |
| Voting Power | Full Vote | 1/10,000th of a Vote |
| Liquidity | Low (Harder to sell) | High (Easier to sell) |
| Best For | Institutions & Founders | Individual Investors |

For nearly every individual investor, the clear answer is the Class B share. The primary benefits of owning BRK.B shares are accessibility and liquidity, allowing you to invest alongside Warren Buffett without needing a fortune. If you have $500 to invest, you can’t buy BRK.A, but you can proudly own a piece of the Berkshire empire. You’re not settling for less; you’re simply choosing the entrance built specifically for you.