Understanding Berkshire Hathaway: Class A vs Class B Shares for Different Investors

Berkshire Hathaway, led by CEO Warren Buffet, has long been recognized for delivering strong short-term stock performance alongside long-term growth potential. However, for many retail investors, accessing this blue-chip investment presents a unique challenge—and that’s where understanding the distinction between class a vs class b shares becomes crucial.

The Affordability Problem With Traditional A Shares

Historically, Berkshire Hathaway Class A shares were the only option available to investors. This created a significant barrier to entry: each A share trades at approximately $528,000. For the vast majority of retail investors, this price point makes ownership practically unrealistic without substantial capital reserves. This high cost meant that only wealthy or institutional investors could directly own the company’s premium shares, leaving everyday savers searching for alternatives.

How B Shares Democratize Access

To address this accessibility issue, Berkshire Hathaway introduced Class B shares—a more investor-friendly option priced around $348 per share. This represents a dramatic reduction in the entry barrier while maintaining the same ownership benefits. The trading dynamics also favor B shares significantly: while A shares see approximately 7,800 shares traded daily on average, B shares experience roughly 3 million shares traded per day. This substantially higher liquidity means better execution for buy and sell orders, particularly important for retail investors who might otherwise face slippage or difficulty exiting positions.

Comparing Class A vs Class B: What’s Actually Different

A common misconception is that A and B shares represent different ownership stakes or company exposure. In reality, they function identically from an economic standpoint. The primary distinction is mathematical: A shares represent a higher proportional ownership relative to B shares, reflecting their premium price. Put simply, if you own 1 A share versus 1,500 B shares, you hold equivalent ownership percentages—the share class merely changes how that ownership is parceled and priced.

Making Your Choice

For investors evaluating class a vs class b shares, the decision typically hinges on capital availability rather than investment quality. If you have $528,000 to deploy and prefer consolidated ownership through fewer shares, Class A may appeal to you. However, if you’re building a diversified portfolio with several hundred dollars, Class B offers comparable exposure with substantially more flexibility and liquidity. Neither guarantees returns—stock market investing always carries risk—but both provide access to one of the market’s most historically resilient businesses.

The introduction of Class B shares fundamentally changed the accessibility equation, transforming Berkshire Hathaway from an exclusive investment vehicle into one available to middle-class savers. Understanding these structural differences empowers you to make a choice aligned with your capital and investment objectives.