Berkshire Hathaway is one of the most impressively successful businesses of this generation and last. It is run by Warren Buffett, always ranked among the richest men in the world. Because he obviously knows how to grow cash, many investors want to put their money where Buffett puts his.
Berkshire Hathaway stock is among the most expensive out there. A single share of Berkshire Hathaway class A stock can sell for more than £65,000. If you have that kind of money to invest, then you can buy shares through any broker. If you own A line shares of Berkshire Hathaway, you can attend stockholder meetings and see Warren Buffett in person. The ticker symbol for Berkshire Hathaway class A shares is BRK-A.
If you want to invest less than six figures in Berkshire Hathaway you can buy class B shares. These shares can sell for thousands of pounds or dollars each. That's still pretty pricey, but possible for many investors. It takes 30 shares of class B stock to equal one share of class A stock. You also have less influence at shareholder meetings. You need 200 shares of class B stock to have the same voting power as someone with one share of class A stock. The ticker symbol for Berkshire Hathaway class B shares is BRK-B.
Another option is to invest in mutual funds that hold a large percentage of Berkshire Hathaway stock. Basically you are buying shares of their shares. Because no mutual fund owns 100 per cent Berkshire Hathaway stock, your investment won't exactly reflect it. You must consider this before investing. Sequoia is a fund that has nearly 25 per cent of its holdings in Berkshire Hathaway. However, it is also expensive. The minimum investment is £3,250. Its ticker symbol is SEQUX. Fairholm has more than 15 per cent of its assets in Berkshire Hathaway. Its ticker symbol is FAIRX. Minimum investment is £1,625.
The mutual fund with the largest holding of Berkshire Hathaway stock is America Funds Growth Fund of Amer A. The fund owns 1.9 per cent of Berkshire Hathaway stock. Even though that's a lot of Berkshire Hathaway stock, it is only 1.5 per cent of its assets. Shares won't mirror Berkshire Hathaway, but it will be part of a broadly diversified investment. Its ticker symbol is AGTHX. Minimum investment £162. Information on mutual funds with Berkshire Hathaway holdings is available on Morningstar.com.
Any of these shares and mutual funds can be purchased through a broker. This can be a full-service broker or an online discount broker. Consider fees and services before buying through anyone. A simple search of the fund or stock name will take you to all the information you need. If you know the ticker symbols, you can get it even faster.
Investing in stocks and mutual funds involves risk. There is always the possibility of losing money on your investment. Consider all risks and read the prospectus before investing your money.
Tips and warnings
- Investing in stocks and mutual funds involves risk. There is always the possibility of losing money on your investment. Consider all risks and read the prospectus before investing your money.