Differences Between BRK A and BRK B

Have you ever looked up a stock price and had to do a double-take? That’s the feeling most people get when they see the cost of one Berkshire Hathaway A share (BRK.A): over $600,000, more than the price of many American homes. But right next to that unbelievable number, you’ll find another stock for the exact same company, Class B (BRK.B), that costs just a few hundred dollars.

This immediately brings up some fair questions. Is the wildly expensive stock somehow “better”? Are you getting a worse deal if you buy the cheaper one? Understanding the differences between BRK.A and BRK.B can feel confusing, but the reason for the gap is actually a fascinating story designed to help small investors. The answer to “Why is BRK.A so expensive?” isn’t about quality, but about history and purpose.

This guide breaks down that story, explaining the key differences in plain English to show why both share classes exist and which one was created for individual investors looking to buy a piece of Warren Buffett’s company.

The ‘Baby B’ Story: Why Warren Buffett Created a More Affordable Stock

For decades, if you wanted to invest directly in Berkshire Hathaway, you faced a huge barrier. A single Class A share cost tens of thousands of dollars, a price tag that put it well out of reach for almost everyone except large institutions and the very wealthy. This high price wasn’t an accident; Warren Buffett preferred to attract long-term, serious partners and believed a high price discouraged short-term speculation.

This created an opportunity for other financial firms. They began buying the expensive Class A shares and then sold tiny, repackaged slices of them to smaller investors. The problem? These firms often charged hefty fees and commissions for this service, creating a costly and indirect way to own a piece of Berkshire.

Warren Buffett disliked this arrangement intensely. He felt these middlemen were taking advantage of everyday people who simply wanted a straightforward path to invest in his company. In his typical practical fashion, he decided to offer a better alternative himself. In 1996, Berkshire Hathaway introduced the Class B stock, immediately nicknamed “Baby B.”

This new share was created for one primary reason: to give anyone the ability to invest in Berkshire Hathaway at a much lower price point, without going through a costly third party. It was a direct answer to the market’s demand, designed from the start as the affordable, accessible option for individual investors.

Key Difference #1: The Price Tag and What It Means for Your Wallet

The most dramatic difference between the A and B shares is the price tag, and it’s not even close. A single Class A (BRK.A) share famously costs hundreds of thousands of dollars—more than the price of a typical house. In stark contrast, you can usually buy a single Class B (BRK.B) share for a few hundred dollars, making it the best Berkshire stock for small investors by a wide margin.

That sky-high price for the A-share is a deliberate feature, not a bug. Warren Buffett has long maintained that the high cost helps attract serious, long-term investors and discourages speculators who jump in and out of stocks. It’s a philosophical choice that has shaped the company’s shareholder base for decades, creating a pool of highly committed partners.

For anyone wondering how to buy Berkshire Hathaway stock without a lottery win, this makes the choice clear. The B-shares put ownership within reach of nearly any investor, turning a theoretical interest into a practical possibility. This accessibility is precisely why the stock was created. The main trade-off for this accessibility comes down to voting rights.

Key Difference #2: Voting Rights and Why They Barely Matter for You

Beyond the price, the most significant technical difference between the two shares comes down to voting rights. Think of voting rights as your official say in major company decisions, like electing the board of directors. It’s the primary “perk” that comes with the more expensive Class A stock, granting shareholders a seat at the company’s decision-making table.

However, the difference in influence isn’t just a small distinction; it’s colossal. The voting power is intentionally structured to keep control with the Class A shareholders, where Warren Buffett holds a significant stake. Here’s how it breaks down:

• 1 Class A (BRK.A) Share = 1 Full Vote
• 1 Class B (BRK.B) Share = 1/10,000th of a Vote

You would need to own 10,000 Class B shares just to equal the voting influence of a single Class A share. But here’s the crucial takeaway: for a typical investor, this difference is purely academic. Because a small handful of insiders control a massive portion of the voting power, even a single Class A vote is a whisper in a hurricane. Your decision to buy Berkshire Hathaway stock is about participating in its financial success, not influencing its corporate governance.

How Much of the Company Do You Actually Own? The 1-to-1,500 Rule

The most important rule for BRK.B stock value is that one Class A share is designed to be worth the economic equivalent of 1,500 Class B shares. Think of it like a giant gold bar (BRK.A) versus 1,500 small gold coins (BRK.B). They may look different, but their total value is identical. This 1-to-1,500 relationship ensures that whether you own one A-share or 1,500 B-shares, you hold the exact same financial stake in Berkshire Hathaway.

To keep this relationship locked in, Berkshire created a one-way street for investors. An owner of a Class A share can, at any time, convert that single share into 1,500 Class B shares. This provides an easy way to cash out a smaller portion of their investment without selling the whole thing. The key here, however, is that this street only goes one way. You cannot bundle 1,500 B-shares together and ask to convert them back into a high-powered A-share. This permanently keeps the Class A shares an exclusive club.

This means your financial slice of Berkshire’s success—your claim on the company’s profits and assets—is perfectly proportional. The B-share is simply a smaller, more accessible piece of the exact same pie. However, the conversion ratio wasn’t always 1-to-1,500; it changed due to a key event in the stock’s history.

Has BRK.B Ever Split? The Story of the 50-for-1 Split

Warren Buffett has famously vowed to never split the high-priced Class A stock, believing its astronomical price tag attracts like-minded, long-term investors. The Class B stock, however, is a different story. In 2010, Berkshire Hathaway initiated a massive 50-for-1 stock split for its BRK.B shares. This single event is what changed the conversion ratio from its original 1-to-30 to the 1-to-1,500 we see today, and it further cemented the stock’s role as the affordable alternative to BRK.A stock.

The reason for this major change wasn’t just to lower the stock’s price; it was a practical move to complete a historic purchase. Berkshire was acquiring the Burlington Northern Santa Fe (BNSF) railroad, one of its largest deals ever. To help pay for the acquisition, Berkshire needed to give BNSF’s existing shareholders some BRK.B stock. At the time, BRK.B was trading for over $3,000 per share, which was too large and clumsy to hand out in small increments. By splitting the stock 50-for-1, the price dropped to a more manageable $60 range, making the transaction possible.

The effect of this split was immediate and profound. For investors wondering how to buy Berkshire Hathaway stock, the answer became clearer than ever. Suddenly, a share of Buffett’s company wasn’t just accessible—it was affordable for almost anyone with a brokerage account. While the move was driven by a business deal, its lasting legacy was turning BRK.B into a true “people’s share.”

Are There Special Perks for Owning the Expensive BRK.A Stock?

So, does that six-figure price tag on a BRK.A share come with secret handshakes or a bigger slice of the profits? The short answer is no. A Class A shareholder doesn’t receive special dividends, get discounts on Geico insurance, or enjoy any other hidden financial advantage. From an economic perspective, your ownership stake in Berkshire’s diverse portfolio of companies scales exactly with your investment, whether you hold a small handful of B-shares or a single, coveted A-share.

The only significant perk of owning BRK.A is its vastly superior voting power. One Class A share gives an investor far more say in corporate decisions—like electing the board of directors—than one Class B share does. For the average person investing for their future, however, this difference is purely academic. Your individual vote would be a tiny drop in a very large ocean, as major decisions are ultimately guided by large institutional holders and, of course, Warren Buffett himself.

In fact, one of the most famous “perks” of being a Berkshire owner is available to everyone. Both Class A and Class B shareholders have the right to attend the legendary annual meeting in Omaha, often called the “Woodstock for Capitalists.” All you need is proof of owning at least one share—of either class. This equal access reinforces the idea that for nearly all investors, the choice between the two stocks simply comes down to price and practicality.

The Final Verdict: Which Berkshire Stock Is Right for You?

With the history and financial details clear, the question of which Berkshire Hathaway stock to buy has a surprisingly simple answer for the vast majority of people.

The core difference when comparing BRK.A vs BRK.B comes down to access versus control. Remember this:

• BRK.A: The original, ultra-high-priced stock for maximum voting control.
• BRK.B: The affordable, accessible stock for owning a piece of the company.

For nearly every individual, the Class B share is the clear and intended choice. It was created specifically to be the best Berkshire stock for small investors, turning a company that once seemed impossibly out of reach into an accessible opportunity. You no longer need to see the price of a Class A share as a barrier; you can now see it as a piece of history, while the Class B share represents your open invitation to invest in the legendary company.