Berkshire Hathaway: Unveiling the Differences Between A and B Share Classes

Understanding the Share Structure

Berkshire Hathaway Inc. (NYSE: BRK-A, BRK-B), the conglomerate led by renowned investor Warren Buffett, has a unique share structure consisting of two classes of stock: Class A and Class B. While both classes represent the same ownership stake in the company, they differ significantly in terms of their market value and voting rights.

Class A: Sky-High Value, Limited Voting Power

Class A shares, denoted by the ticker symbol BRK-A, are highly valued in the stock market. As of March 14, 2023, a single Class A share was trading at around $475,000. However, each Class A share carries only one vote, which can be a disadvantage for investors seeking to influence company decisions.

Class B: Lower Value, Enhanced Voting Rights

Class B shares, denoted by the ticker symbol BRK-B, are significantly more affordable than Class A shares. As of the same date, a single Class B share was trading at around $300. However, each Class B share carries 30 votes, giving investors a greater say in corporate governance. This makes Class B shares more attractive to shareholders who prioritize voting power over immediate stock appreciation.

One Exceptional Enterprise

Despite their differences in market value and voting rights, both Class A and Class B shares represent ownership in the same exceptional enterprise. Berkshire Hathaway's portfolio includes diverse businesses such as insurance, energy, manufacturing, and consumer products. Under Buffett's leadership, the company has consistently delivered superior returns to shareholders over the long term, making it a popular investment choice for both individuals and institutions.