Berkshire Hathaway Stock 101: Why Are There Two Types Of Shares?

Ever looked at Berkshire Hathaway’s stock and thought, “Wait, there are two of them?” You’re not alone. It’s one of the quirkiest little puzzles in the investing world—and trust me, solving it is surprisingly fun. Today, we’re cracking the code on why Warren Buffett’s company has both Class A and Class B shares.

The Almighty Class A Share: The $600,000 Ticket

First, let’s talk about the Class A share (ticker: BRK.A). This is the big kahuna. As of this writing, one share costs roughly $600,000. Yes, you read that right—more than a house in many places.

Why so pricey? Because Buffett never wanted to split the stock. He believed a high price kept out the “noisy” day traders and attracted long-term, serious investors. It’s basically a club with a very tall door.

But here’s the kicker: that sky-high price created a problem. What if you wanted to buy just a tiny slice of Berkshire but didn’t have half a million dollars lying around? That’s where the B shares come in.

Enter the Class B Share: Your Affordable Key

In 1996, Berkshire introduced the Class B share (ticker: BRK.B). It was designed to be a more accessible version—think of it as a “slice” of the Berkshire pie. Initially priced at 1/30th of the Class A share, it now trades at about 1/1,500th of the A share’s value (thanks to a 50-for-1 split in 2010).

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So today, one BRK.B share costs around $400. Suddenly, anyone can own a piece of the Oracle of Omaha’s empire! And the best part? It still gives you most of the same economic benefits.

But here’s the twist: B shares get no voting power. Well, not really—they get 1/10,000th of a vote per share versus the A share’s 1 vote. A shares are the royalty; B shares are the friendly, affordable cousins who still get invited to the party.

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Why Did This Happen? (And Why Should You Care?)

It all started because of a banana stand. No, really. In the 1990s, a company called Diversified Retailing (which Berkshire owned) merged with another firm, and to avoid a messy legal fight, Buffett needed a way for smaller investors to swap their shares. Enter the B share—a brilliant workaround that let everyone keep their Berkshire exposure.

But the deeper reason is philosophical. Buffett hates stock splits. He believes they attract short-term speculators who treat stocks like lottery tickets. The two-class structure lets him keep the A share as a “sanctuary” for patient capital, while the B share opens the door for regular folks like you and me.

And here’s the fun part: you can actually convert A shares into B shares, but you can never convert B shares back into A shares. It’s like a one-way street—once you go B, you never go back (unless you buy an A share outright).

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The Practical Magic: Which One Should You Buy?

Unless you’re a hedge fund manager or a very lucky lottery winner, you’ll be buying the B share. And guess what? That’s perfectly fine. The B share tracks the A share’s value almost exactly, minus a tiny fraction of voting power. You get the same investment performance, the same dividends (Berkshire doesn’t pay them, but you get the point), and the same bragging rights.

So go ahead, buy one B share for the price of a nice dinner. You’re now a Berkshire owner. It’s like owning a tiny, smiling slice of a $900 billion giant—and you didn’t have to sell your house to do it.

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Why This Makes Life More Fun

Learning about stock classes isn’t just about finance—it’s about seeing how cleverness solves everyday problems. Buffett could have taken the easy route and split the stock. Instead, he built a two-tier system that respects long-term thinkers while welcoming new investors. It’s a little like having a VIP lounge and a friendly barstool—both serve the same fine whiskey.

The next time you see BRK.B on your brokerage app, you’ll smile. You’ll know the story behind the ticker. You’ll feel like you’ve peeked behind the curtain of one of the world’s most legendary companies. And that, my friend, is inspiring.

So here’s your uplifting note: Curiosity pays. Every question you ask about the market—even a silly one about two stock classes—unlocks a little more of the world’s magic. Keep exploring. Keep asking “why?” And maybe, just maybe, buy that one B share today. The journey starts with a single, $400 step.