How much money do I need to invest with Berkshire Hathaway?
Berkshire Hathaway differs from other investment firms, like hedge funds. Anyone can invest in Berkshire Hathaway if they have enough money to buy at least one Class B share (about $360 in late 2023).
Key Points. Berkshire Hathaway is a testament to owning great businesses for the long term. Investors would do well to value its stock based on book value rather than earnings. The shares aren't a bargain, but Berkshire's higher returns on equity are encouraging.
| Previous Close | 385.40 |
|---|---|
| Bid | 383.04 x 1400 |
| Ask | 383.35 x 1000 |
| Day's Range | 379.17 - 385.70 |
| 52 Week Range | 292.42 - 385.73 |
Over the last 10 years, Berkshire stock hasn't been able to produce higher returns on capital than the S&P 500 because of its size problem and its lack of a dividend. Dividend payments allow investors to amplify capital gains over time through the power of compounding.
Invest in Berkshire Hathaway on Stash
Stash allows you to purchase smaller pieces of investments, called fractional shares, rather than having to pay the full price for a whole share.
But some of the biggest issues for Berkshire, maybe "good problems", remain the same as in recent years: a lot of cash on the balance sheet, no big M&A deals, and an Apple stake now so large it and the cash now rival the size of Berkshire's operating companies.
Long-term performance means sticking around
That's pretty impressive, but if you add dividends into the equation, the numbers are a lot less compelling. Berkshire Hathaway doesn't pay dividends, so its return remains at 215%. But if you reinvested dividends into the S&P 500, your total return would be about 205%.
As of 2024-01-28, the Fair Value of Berkshire Hathaway Inc (BRK.B) is 884.76 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 385.4 USD, the upside of Berkshire Hathaway Inc is 129.6%.
Berkshire Hathaway (BRK. A 1.06%) (BRK. B 1.20%) is a sprawling conglomerate worth over $770 billion. While its main business is insurance, much of Berkshire's value comes from its investment portfolio.
Vanguard - Fund overview - Stable Value. The BRK Class B Stock Fund (the “Fund”) seeks to provide long-term growth of capital by investing almost exclusively in Berkshire Hathaway Class B stock. Learn more about this portfolio's investment strategy and policy.
What is the return of Berkshire Hathaway 20 years?
Berkshire's Class A shares were up 0.3% Friday to $542,600 while the Class B stock was 0.1% higher at $356.47. The stock is roughly even with the index over the past 20 years with a 9.8% annualized return.
| Year | Berkshire Hathaway Returns (CAGR) in Last 10 Years |
|---|---|
| 2010-2020 | 11% |
| 2011-2021 | 15% |
| 2012-2022 | 13% |
| 2013-2023 | 12% |
Key Takeaways
Berkshire Hathaway Class B shares, first issued in 1996, are more modestly priced and have a correspondingly modest share of equity value in the company. There can be minor differences between the two in market performance, but the key difference is that Class B is affordable to small investors.
While Berkshire Hathaway (BRK.B) doesn't pay a dividend, more than half of the stocks in the holding company's roughly $310-billion equity portfolio do. And the best Warren Buffett dividend stocks produce substantial income for the Oracle of Omaha.
What's the difference between Berkshire Hathaway Class A and Class B shares? Aside from the price, the main difference between Berkshire Hathaway Class A shares and Class B shares is that Class A shares can never be split, while Class B shares can.
While his firm Berkshire Hathaway Inc. (NYSE:BRK-A) is not structured as a hedge fund, meaning that it does not use leverage to make risky investments for massive profits, Mr. Buffett's investment portfolio filed every quarter with the SEC still generates hype like the filings of major hedge funds do.
Risks of being a Berkshire investor include issues of regulatory challenges and being a conglomerate, as well as the performance of successors when Warren Buffett retires or dies.
With its 4-star rating, we believe Berkshire Hathaway's stock is undervalued compared with our long-term fair value estimate.
Berkshire Hathaway has experienced controversy due to its former charitable giving practices. Buffett believed that it was inappropriate for a company to direct its charitable giving to the pet causes of the board of directors.
| Year | Prediction | Change |
|---|---|---|
| 2025 | $ 650,594 | 11.61% |
| 2026 | $ 726,154 | 24.58% |
| 2027 | $ 810,489 | 39.05% |
| 2028 | $ 904,619 | 55.19% |
What will Berkshire Hathaway be worth in 2030?
According to the Traders Union long-term price forecast Berkshire Hathaway (BRK.B) can reach 441.85 USD by 2025, 694.3 USD by 2030, 996.71 USD by 2034.
Berkshire Hathaway 1 Year Total Returns (Daily): 17.85% for Jan. 18, 2024.
- Open a brokerage account.
- Fund your account.
- Open the order page.
- Fill in the order page, including selecting the right ticker (BRK. B for Berkshire Hathaway), the number of shares you want to purchase, and whether it's a market or limit order.
- Submit the purchase order.
In January of 2000, shares of Berkshire Class B traded at about $1,646. Right before the stock split in 2010, they traded for roughly $3,353, which means at that point, you were up about 104% and had turned your $5,000 into $10,200.
A Class A shares. Warren Buffett owns 229,016 shares of Berkshire Hathaway's Class A common stock (BRK. A) and 276 shares of its Class B common stock (BRK. B), representing approximately 37.4% of the outstanding Class A shares and less than 0.01% of the outstanding Class B shares, according to an SEC filing.
