# BRK.A vs BRK.B: Which Berkshire Share Class to Buy Published: 2026-04-19 Author: Warren Team URL: https://www.heywarren.com/blog/brka-vs-brkb --- One share of BRK.A trades for over $700,000, the highest-priced stock on any major U.S. exchange, while BRK.B changes hands for a few hundred dollars. Same company. Same Warren Buffett. Same Berkshire Hathaway boardroom in Omaha. Yet the two tickers behave very differently inside a brokerage account, and the BRK.A vs BRK.B decision trips up first-time buyers who assume they are interchangeable. The truth is more interesting. Class A and Class B shares represent ownership in identical underlying assets, but they carry different prices, different voting weights, different liquidity profiles, and different tax-planning implications. Choose the wrong one and you may struggle to rebalance, gift shares, or even buy a single share at all. Choose the right one and you get clean exposure to one of history's greatest compounding machines. This guide walks through what BRK.A and BRK.B actually are, why Berkshire created two share classes in 1996, the precise differences between them, and which one fits a typical retail investor. By the end, you will know exactly which ticker to type into your broker, and why. ## What Are BRK.A and BRK.B Shares? BRK.A and BRK.B are the two share classes of Berkshire Hathaway, the conglomerate built by Warren Buffett and the late Charlie Munger. Class A shares (BRK.A) carry full voting rights and a six-figure price tag. Class B shares (BRK.B) represent 1/1,500 of a Class A share economically, with proportionally diminished voting power. ![Both BRK.A and BRK.B represent ownership in the same Berkshire Hathaway business, differing only in price, voting weight, and accessibility.](data:image/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20600%20211%22%20width%3D%22600%22%20height%3D%22211%22%20role%3D%22img%22%3E%3Ctitle%3EHierarchy%3C%2Ftitle%3E%3Crect%20width%3D%22100%25%22%20height%3D%22100%25%22%20fill%3D%22%23f8fafc%22%2F%3E%3Crect%20x%3D%22220%22%20y%3D%2220%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22%232563eb%22%2F%3E%3Ctext%20x%3D%22300%22%20y%3D%2254%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22700%22%20fill%3D%22white%22%3EBerkshire%20Hathaway%3C%2Ftext%3E%3Cpath%20d%3D%22M%20300%2078%20L%20300%20105.5%20L%20210%20105.5%20L%20210%20133%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%20fill%3D%22none%22%2F%3E%3Crect%20x%3D%22130%22%20y%3D%22133%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22white%22%20stroke%3D%22%230891b2%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22210%22%20y%3D%22158%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EBRK.A%3C%2Ftext%3E%3Ctext%20x%3D%22210%22%20y%3D%22176%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3E~%24700K%2Fshare%2C%201%20vote%3C%2Ftext%3E%3Cpath%20d%3D%22M%20300%2078%20L%20300%20105.5%20L%20390%20105.5%20L%20390%20133%22%20stroke%3D%22%23cbd5e1%22%20stroke-width%3D%222%22%20fill%3D%22none%22%2F%3E%3Crect%20x%3D%22310%22%20y%3D%22133%22%20width%3D%22160%22%20height%3D%2258%22%20rx%3D%228%22%20fill%3D%22white%22%20stroke%3D%22%230891b2%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22390%22%20y%3D%22158%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2213%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EBRK.B%3C%2Ftext%3E%3Ctext%20x%3D%22390%22%20y%3D%22176%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2210%22%20fill%3D%22%2364748b%22%3E~%24480%2Fshare%2C%201%2F10%2C000%20vote%3C%2Ftext%3E%3C%2Fsvg%3E) *Both BRK.A and BRK.B represent ownership in the same Berkshire Hathaway business, differing only in price, voting weight, and accessibility.* Both classes give you a slice of the same underlying business: insurance giants like GEICO and Gen Re, the BNSF railroad, Berkshire Hathaway Energy, See's Candies, Dairy Queen, dozens of operating subsidiaries, and a public stock portfolio worth hundreds of billions of dollars. Whether you hold BRK.A or BRK.B, you own a proportional claim on the same earnings stream. The distinction is purely structural. Class A is the original, unsplit share that has compounded since Buffett took control of the textile mill in 1965. Class B is a smaller, more accessible unit created decades later to solve a specific problem. Neither pays a dividend. Neither has ever been split, Class A by deliberate policy, Class B only once in 2010. Most investors who say "I bought Berkshire" actually mean BRK.B. It is the class included in the S&P 500, the class quoted on most retail dashboards, and the class small accounts can realistically afford. Class A remains the domain of long-term insiders, family offices, and institutions willing to lock up large amounts of capital in a single, illiquid share certificate. ## Why Berkshire Has Two Share Classes Berkshire issued Class B shares in May 1996, and the backstory matters. By the mid-1990s, BRK.A had crossed roughly $30,000 per share. Financial promoters started packaging unit trusts that held a slice of Berkshire and sold fractional interests to small investors at marked-up prices. Buffett saw these "Berkshire-Hathaway-style" knock-off funds as predatory. Buffett was famously reluctant to split the stock. He believed a high share price attracted long-term, business-minded shareholders and discouraged short-term traders. But he was even more opposed to letting middlemen profit from his name while charging Main Street investors hidden fees. So he created a lower-priced, lower-voting Class B share directly, undercutting the unit trusts and giving retail investors clean access. ### The 1996 Class B Introduction The original BRK.B was priced at 1/30th of a Class A share, with 1/200th of the voting rights. In his 1996 chairman's letter, Buffett warned would-be Class B buyers not to expect quick gains and emphasized that Berkshire would always be run for owners with a long horizon. ### The 2010 50-for-1 Split When Berkshire acquired the Burlington Northern Santa Fe railroad in 2010, it needed a stock currency small enough that BNSF shareholders could receive whole-share consideration without triggering tax issues on fractional shares. Berkshire executed a 50-for-1 split on BRK.B, dropping the ratio to 1/1,500 of a Class A share and the voting rights to 1/10,000. That split also paved the way for BRK.B's inclusion in the S&P 500 a few weeks later. ## BRK.A vs BRK.B Key Differences The most important BRK.A vs BRK.B differences come down to five variables: price per share, voting rights, conversion rules, liquidity, and split history. On every dimension Class A is the heavyweight version, and Class B is the retail-friendly version. Both track the same underlying business value almost perfectly. ### Price Per Share and Affordability BRK.A trades in the high six figures, often quoted above $700,000 per share as of recent trading, making it the highest-priced common stock on any major U.S. exchange. BRK.B trades in the low-to-mid hundreds of dollars, putting a single share within reach of almost any brokerage account. For a self-directed investor with a few thousand dollars to deploy, BRK.B is the only realistic option. Even with fractional-share platforms now offering slivers of BRK.A, owning whole shares of Class A typically requires a portfolio measured in millions. ### Voting Rights Each Class A share carries one full vote at Berkshire's annual meeting. Each Class B share carries 1/10,000 of a vote. So a single Class A share has the voting weight of 10,000 Class B shares, far more than the 1,500-to-1 economic ratio. In practice, voting power at Berkshire is concentrated. Buffett's own holdings, plus a few long-time insiders, dominate the voter rolls. Retail investors rarely sway outcomes regardless of which class they own, but the structural difference matters for governance purists and for very large holders. ### Conversion Between Classes This is asymmetric. A Class A holder can convert each share into 1,500 Class B shares at any time, with no fee, simply by instructing the transfer agent. The reverse is not allowed: BRK.B cannot be converted into BRK.A. Once you own Class B, you stay in Class B unless you sell and rebuy. That one-way conversion is why BRK.B almost always trades at a tiny discount to its 1/1,500 share of BRK.A, Class A holders can arbitrage any premium by converting and selling. The discount rarely exceeds 1 percent. ## The 1,500-to-1 Exchange Ratio Explained One Class A share equals 1,500 Class B shares economically and 10,000 Class B votes structurally. That gap, economic 1,500-to-1, voting 10,000-to-1, is the cleanest way to remember the entire dual-class structure. Everything else flows from those two ratios. ![Class A holders can convert to 1,500 Class B shares tax-free at any time; the reverse conversion is not permitted.](data:image/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20660%20125%22%20width%3D%22660%22%20height%3D%22125%22%20role%3D%22img%22%3E%3Ctitle%3EFlow%20diagram%3C%2Ftitle%3E%3Crect%20width%3D%22100%25%22%20height%3D%22100%25%22%20fill%3D%22%23f8fafc%22%2F%3E%3Crect%20x%3D%2230%22%20y%3D%2225%22%20width%3D%22170%22%20height%3D%2275%22%20rx%3D%2210%22%20fill%3D%22white%22%20stroke%3D%22%232563eb%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22115%22%20y%3D%2258.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3E1%20BRK.A%3C%2Ftext%3E%3Ctext%20x%3D%22115%22%20y%3D%2278.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20fill%3D%22%2364748b%22%3E~%24720%2C000%3C%2Ftext%3E%3Cline%20x1%3D%22205%22%20y1%3D%2262.5%22%20x2%3D%22237%22%20y2%3D%2262.5%22%20stroke%3D%22%2364748b%22%20stroke-width%3D%222%22%2F%3E%3Cpolygon%20points%3D%22244%2C62.5%20235%2C57.5%20235%2C67.5%22%20fill%3D%22%2364748b%22%2F%3E%3Crect%20x%3D%22245%22%20y%3D%2225%22%20width%3D%22170%22%20height%3D%2275%22%20rx%3D%2210%22%20fill%3D%22white%22%20stroke%3D%22%232563eb%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22330%22%20y%3D%2258.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EConvert%3C%2Ftext%3E%3Ctext%20x%3D%22330%22%20y%3D%2278.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20fill%3D%22%2364748b%22%3Etax-free%3C%2Ftext%3E%3Cline%20x1%3D%22420%22%20y1%3D%2262.5%22%20x2%3D%22452%22%20y2%3D%2262.5%22%20stroke%3D%22%2364748b%22%20stroke-width%3D%222%22%2F%3E%3Cpolygon%20points%3D%22459%2C62.5%20450%2C57.5%20450%2C67.5%22%20fill%3D%22%2364748b%22%2F%3E%3Crect%20x%3D%22460%22%20y%3D%2225%22%20width%3D%22170%22%20height%3D%2275%22%20rx%3D%2210%22%20fill%3D%22white%22%20stroke%3D%22%232563eb%22%20stroke-width%3D%222%22%2F%3E%3Ctext%20x%3D%22545%22%20y%3D%2258.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3E1%2C500%20BRK.B%3C%2Ftext%3E%3Ctext%20x%3D%22545%22%20y%3D%2278.5%22%20text-anchor%3D%22middle%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2211%22%20fill%3D%22%2364748b%22%3E~%24480%20each%3C%2Ftext%3E%3C%2Fsvg%3E) *Class A holders can convert to 1,500 Class B shares tax-free at any time; the reverse conversion is not permitted.* If BRK.A is quoted at $720,000, fair value for BRK.B is roughly $720,000 รท 1,500 = $480 per share. In practice, BRK.B usually trades within pennies of that math because of the conversion right described above. Anyone considering arbitrage should remember that conversion takes time and that taxable accounts may trigger capital gains. The 10,000-to-1 voting ratio means a Class B share carries about 6.67 times less voting power per dollar invested than a Class A share. That structural choice was deliberate. Buffett wanted retail investors to be able to participate economically without diluting the long-term governance influence of the original Class A base. For most buyers this voting math is academic. Berkshire's annual meeting in Omaha, the so-called "Woodstock for Capitalists", welcomes both classes equally as attendees. The distinction only bites at the ballot box. ## Should You Buy BRK.A or BRK.B? For nearly every retail investor, BRK.B is the right choice. It offers identical economic exposure to Berkshire Hathaway at a fraction of the price, with deeper daily trading volume, tighter bid-ask spreads, an active options chain, and inclusion in major indexes. BRK.A is generally only practical for ultra-high-net-worth holders or estate-planning vehicles. ![BRK.B trades millions of shares daily versus a few hundred for BRK.A, making B shares far easier to buy or sell quickly.](data:image/svg+xml,%3Csvg%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%20viewBox%3D%220%200%20800%20210%22%20width%3D%22800%22%20height%3D%22210%22%20role%3D%22img%22%3E%3Ctitle%3EComparison%3C%2Ftitle%3E%3Crect%20width%3D%22100%25%22%20height%3D%22100%25%22%20fill%3D%22%23f8fafc%22%2F%3E%3Ctext%20x%3D%22230%22%20y%3D%2257.5%22%20text-anchor%3D%22end%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EBRK.A%3C%2Ftext%3E%3Crect%20x%3D%22240%22%20y%3D%2225%22%20width%3D%226%22%20height%3D%2255%22%20rx%3D%226%22%20fill%3D%22%232563eb%22%2F%3E%3Ctext%20x%3D%22258%22%20y%3D%2257.5%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22700%22%20fill%3D%22%232563eb%22%3E200%3C%2Ftext%3E%3Ctext%20x%3D%22230%22%20y%3D%22152.5%22%20text-anchor%3D%22end%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22600%22%20fill%3D%22%230f172a%22%3EBRK.B%3C%2Ftext%3E%3Crect%20x%3D%22240%22%20y%3D%22120%22%20width%3D%22450%22%20height%3D%2255%22%20rx%3D%226%22%20fill%3D%22%237c3aed%22%2F%3E%3Ctext%20x%3D%22702%22%20y%3D%22152.5%22%20font-family%3D%22system-ui%2C-apple-system%2Csans-serif%22%20font-size%3D%2214%22%20font-weight%3D%22700%22%20fill%3D%22%237c3aed%22%3E3.0M%3C%2Ftext%3E%3C%2Fsvg%3E) *BRK.B trades millions of shares daily versus a few hundred for BRK.A, making B shares far easier to buy or sell quickly.* ### Liquidity and Spreads BRK.B trades millions of shares per day. Bid-ask spreads are typically a penny or two, comparable to any large-cap S&P 500 component. BRK.A trades only a few hundred shares per day, sometimes fewer than 200, with spreads that can stretch into the hundreds of dollars per share. If you ever need to sell quickly, BRK.B will fill instantly at a fair price. A market order on BRK.A could move the quote noticeably and produce slippage you would never see on the B shares. ### Options, Fractional Shares, and Index Inclusion BRK.B has a robust listed options market, covered calls, cash-secured puts, and protective hedges all work. BRK.A has no listed options because each contract would represent over $70 million of underlying stock. Fractional-share brokerages let you buy slices of BRK.A, but the underlying liquidity issues remain. BRK.B is included in the S&P 500 and most total-market index funds. So if you already own a broad index ETF, you are quietly long BRK.B. Class A is excluded from those benchmarks because its price and float make it impractical for index replication. ### Tax and Inheritance Considerations Conversion from BRK.A to BRK.B is tax-free under U.S. tax law because the [IRS](https://www.irs.gov/) treats it as a [recapitalization](/blog/recapitalization), not a sale. That makes Class A a useful estate-planning asset: heirs inherit at the stepped-up basis, then convert to Class B for easier division and gifting. Selling either class triggers normal capital gains. Some long-term Class A holders deliberately hold the original shares to avoid the small bookkeeping nuisance of tracking 1,500 Class B lots after conversion. For a new buyer, none of this applies, start with BRK.B. ## BRK.A vs BRK.B Dividends, Splits, and Index Status Berkshire pays no dividend on either class, Buffett retains every dollar of earnings to reinvest in the business. BRK.A has never been split in its 60-year history, while BRK.B split 50-for-1 in 2010 to facilitate the BNSF acquisition. BRK.B is included in the S&P 500; BRK.A is not. The no-dividend policy is core to Berkshire's identity. Buffett and Munger argued for decades that retained earnings compounded at Berkshire's [internal rate of return](/blog/how-is-irr-calculated) would deliver more after-tax wealth than a dividend ever could. Shareholders who want income are expected to sell a few shares periodically, a "homemade dividend" approach. The split history matters because it tells you something about management philosophy. A company that has refused to split for six decades is signaling that it cares about the type of shareholder it attracts. The single 2010 split on Class B was a tactical move tied to a specific acquisition, not a change of heart. Index inclusion has practical consequences. Because BRK.B sits in the S&P 500, it is automatically bought by hundreds of billions of dollars in passive funds. That provides a steady bid for the shares and tightens the link between BRK.B's price and broader market flows. For brokerage minimums, BRK.B fits every account. Many platforms now also offer fractional BRK.A, but the underlying spreads still apply when those slices are aggregated and routed. If you want predictable execution, stick with whole shares of BRK.B. The choice between BRKA vs BRKB ultimately rewards the simpler, cheaper, more liquid path for new investors. ## Authoritative Sources For deeper background and primary-source data on this topic, the following authoritative sources are useful starting points: - [SEC](https://www.sec.gov/) - [Federal Reserve](https://www.federalreserve.gov/) ## Conclusion The BRK.A vs BRK.B decision is simpler than its surface complexity suggests. Both classes own the same Berkshire Hathaway, run by the same management, generating the same earnings per economic unit. Price, voting rights, liquidity, and convertibility are the only real variables, and for almost every retail investor those variables point clearly to one answer. Key takeaways: - BRK.A and BRK.B are economically equivalent at a 1,500-to-1 ratio, with Class B carrying 1/10,000 the voting weight per share. - Class A can convert to Class B tax-free; the reverse is not allowed. - BRK.B is more liquid, has listed options, sits in the S&P 500, and fits any portfolio size. - Neither class pays a dividend, all earnings are reinvested at Berkshire's internal compounding rate. - For new buyers, BRK.B is almost always the right choice; BRK.A suits very large or estate-focused holders. Looking ahead, expect Berkshire to maintain this dual-class structure indefinitely. The 1996 design has aged remarkably well, and there is no public hint that management intends to change it. Whichever ticker you choose, you are buying into a 60-year compounding story built on patience and discipline. Ready to put this knowledge to work? Try Warren, your AI financial advisor, get personalized, conflict-free guidance at heywarren.com --- ## Related Reading **More from Warren**: - [Cost of Equity: Formula, Models, and How to Calculate It](/blog/cost-of-equity-equation) - [Defined Contribution vs. Defined Benefit: How Retirement Plans Differ](/blog/defined-contribution-versus-defined-benefit) - [GOOG vs. GOOGL: What's the Difference Between Alphabet's Share Classes?](/blog/difference-between-goog-and-googl) **Authoritative sources**: - [SEC Investor.gov, Stocks](https://www.investor.gov/introduction-investing/investing-basics/investment-products/stocks) - [FINRA, Stock Basics](https://www.finra.org/investors/learn-to-invest/types-investments/stocks) - [NYSE, Market Data](https://www.nyse.com/market-data)