Berkshire Hathaway is a holding company led by Warren Buffett. It owns stakes in diverse businesses, from insurance to railroads to candy shops. Its stock (BRK.A and BRK.B) trades on the New York Stock Exchange and reflects the value of these holdings.Unlike typical companies, Berkshire doesn’t focus on one industry. It’s a portfolio of carefully chosen businesses, making its stock a unique investment.
A Brief History of Berkshire Hathaway
Founded in 1839 as a textile company, Berkshire Hathaway struggled by the 1960s. Warren Buffett took control in 1965, transforming it into an investment powerhouse. Today, it’s valued at over $1 trillion, a testament to Buffett’s strategy.
Today, Berkshire Hathaway owns companies like:
- GEICO (insurance)
- Duracell (batteries)
- BNSF Railway (transportation)
- See’s Candies (food)
- Parts of Apple, Coca-Cola, and Bank of America
BRK.A vs. BRK.B:
Berkshire offers two stock classes:
- BRK.A: The original, priced at $600,000+ per share in 2025. It’s for high-net-worth investors.
- BRK.B: A more affordable option, trading at $400–$500 per share. It’s accessible to everyday investors.
A Smart Investment Choice
Berkshire Hathaway stock is a cornerstone for many portfolios. Here’s why it’s a top choice in 2025:
1. Diversification
Berkshire owns companies like Geico, BNSF Railway, and See’s Candies. Investing in its stock is like owning a slice of dozens of industries, reducing risk.
2. Warren Buffett’s Expertise
Buffett’s track record is unmatched. His value investing approach buying undervalued, high-quality companies drives Berkshire’s success.
3. Long-Term Growth
Berkshire’s stock has grown steadily for decades. A $1,000 investment in 1965 would be worth millions today.
4. Financial Strength
With billions in cash reserves, Berkshire can weather economic storms.
Real-World Example: Apple Investment
Berkshire’s stake in Apple, worth over $150 billion in 2025, shows Buffett’s knack for picking winners. This investment alone boosts BRK’s value.
Berkshire Hathaway Makes Money
Berkshire Hathaway has a unique business model that fuels its growth.
Primary Revenue Sources:
1. Insurance Operations
This includes GEICO, Berkshire Hathaway Reinsurance, and others. Insurance companies collect premiums, which Berkshire invests in other businesses and stocks.
2. Owned Businesses
Companies like BNSF Railway and See’s Candies generate consistent cash flow.
3. Stock Investments
Berkshire invests heavily in other companies like:
- Apple
- American Express
- Chevron
- Coca-Cola
4. Dividends and Interest
Many of the companies Berkshire invests in pay dividends, which become income.
Risks of Investing in Berkshire Hathaway Stock
No investment is risk-free. Here are challenges to consider:
1. Succession Concerns
Buffett, now 94, won’t lead forever. While Greg Abel is his likely successor, transitions can unsettle markets.
2. Market Volatility
Economic shifts, like inflation or recessions, can impact Berkshire’s holdings, especially in retail and manufacturing.
3. No Dividends
Unlike many stocks, Berkshire doesn’t pay dividends. It reinvests profits, which may not suit income-focused investors.
4. High Share Price
Even BRK.B’s $450 price can feel steep for beginners. Fractional shares are an option, but not all brokers offer them.
Real-World Example: 2008 Financial Crisis
During the 2008 crash, Berkshire’s stock dropped 30%. It recovered strongly, showing resilience but also vulnerability to market swings.
Growth of Berkshire Hathaway Stock
Let’s say your grandparents invested $1,000 in Berkshire Hathaway in 1965. That investment would be worth over $30 million today.
Key Milestones:
| Year | Event |
| 1965 | Warren Buffett takes control |
| 1996 | Class B shares introduced |
| 2010 | Acquires BNSF Railway |
| 2020 | Massive investments in Apple and other tech stocks |
| 2025 | Market cap exceeds $800 billion |
Invest in Berkshire Hathaway Stock
Ready to buy Berkshire stock? Here’s a step-by-step guide:
- Choose a Brokerage: Use platforms like Fidelity, Robinhood, or Schwab. Compare fees and features.
- Open an Account: Provide ID and bank details. Most brokers offer quick online setup.
- Research BRK.B: Focus on BRK.B for affordability. Check its price and recent news.
- Place an Order: Use a market or limit order. Start small if you’re a beginner.
- Monitor Your Investment: Track Berkshire’s earnings reports and market trends.
Tips for Beginners
- Start Small: Buy one or two BRK.B shares to learn the ropes.
- Use Fractional Shares: Some brokers let you buy partial shares if $450 is too much.
- Diversify: Don’t put all your money in one stock, even a strong one like Berkshire.
Key Factors
Several trends shape Berkshire’s performance this year:
1. Economic Recovery
Post-2024 slowdown, 2025 shows growth. Berkshire’s consumer and industrial holdings, like Duracell and BNSF, benefit.
2. Interest Rates
Higher rates could hurt Berkshire’s insurance business but boost its cash reserves’ returns.
3. Tech Holdings
Apple, Berkshire’s largest holding, drives gains. Strong iPhone sales in 2025 lift BRK’s value.
4. Buybacks
Berkshire often repurchases its stock, signaling confidence and boosting share prices.
5. BNSF Railway
Berkshire’s railroad, BNSF, thrives in 2025 as global trade rebounds. Its steady cash flow supports BRK’s stability.
How to Buy Berkshire Hathaway Stock?
Ready to invest? Here’s how to get started in just a few steps:
1. Choose a Brokerage Account
Use platforms like:
- Fidelity
- Charles Schwab
- Robinhood
- E*TRADE
- Webull
Make sure the platform allows you to buy BRK.B shares.
2. Fund Your Account
Transfer money via bank account, wire, or credit/debit card (depending on the broker).
3. Search for the Stock
Type in “BRK.B” (Class B) or “BRK.A” (Class A) in the platform’s search bar.
4. Decide How Much to Buy
You don’t have to buy a full share you can buy fractional shares on some platforms.
5. Place Your Order
Use a market order to buy at the current price or a limit order to set a specific price.
Tips for Beginners Investing in Berkshire Hathaway
If you’re new to investing, keep these tips in mind:
- Start with BRK.B, not BRK.A: it’s affordable and still offers the same business exposure.
- Think long-term: this isn’t a stock for flipping.
- Invest consistently: consider using dollar-cost averaging.
- Don’t panic during market dips: Berkshire has weathered many storms.
- Stay informed: follow Warren Buffett’s annual letters and Berkshire’s quarterly reports.
Comparing Berkshire Hathaway Stock to Other Investments
How does BRK stack up? Let’s compare:
S&P 500 Index Funds
- Berkshire: Offers Buffett’s expertise but no dividends.
- S&P 500 Funds: Broader diversification, lower fees, and dividends.
Tech Stocks
- Berkshire: Stable but slower growth.
- Tech Stocks (e.g., Tesla): Higher potential returns but more volatility.
Bonds
- Berkshire: Growth-focused, no fixed income.
- Bonds: Safer, with predictable returns.
Tax Considerations for Berkshire Hathaway Stock
Taxes impact your returns. Here’s what to know:
1. Capital Gains
If you sell BRK.B at a profit, you’ll owe capital gains tax. Long-term gains (held over a year) are taxed at lower rates.
2. No Dividends, No Tax
Since Berkshire doesn’t pay dividends, you avoid dividend taxes, a plus for high earners.
3. Tax-Advantaged Accounts
Consider holding BRK.B in a Roth IRA or 401(k) to defer or avoid taxes on gains.
4. Tax Savings
An investor holding BRK.B in a Roth IRA for 10 years avoided $10,000 in taxes on gains, boosting their net return.
The Buffett Investment Philosophy
When you invest in Berkshire Hathaway, you’re essentially buying into Warren Buffett’s investing mindset a philosophy that has stood strong for decades and consistently outperformed the market.
1. Value Over Hype
Buffett’s core strategy revolves around value investing. He looks for companies that are undervalued by the market but have solid fundamentalsstrong earnings, loyal customers, and room to grow. This strategy is the opposite of chasing trendy or speculative stocks.
One of his famous quotes sums it up well:
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
This patient, methodical approach has led to long-term success and made Berkshire Hathaway one of the most respected names in finance.
2. The Moat Principle
Buffett often refers to a business having a “moat” a competitive advantage that protects it from rivals. For example:
- Coca-Cola has global brand recognition and customer loyalty.
- Apple has a strong ecosystem that keeps users locked in.
- GEICO benefits from low-cost operations and brand trust.
A wide moat means a business can defend its profits and market share over time, making it a safer investment.
3. Long-Term Patience
Buffett doesn’t believe in timing the market. He prefers buying and holding stocks for decades, allowing compound interest to work its magic. Berkshire’s performance shows that this works big time.
He once said:
“Our favorite holding period is forever.”
4. Financial Literacy and Simplicity
Buffett is known for sticking to what he understands. He avoids investments he can’t explain in simple terms. This is a great takeaway for beginner investors: only invest in what you know.
How Berkshire Hathaway Survives Market Crashes?
One of the biggest fears investors have is losing money during a stock market crash. The good news? Berkshire Hathaway has a reputation for weathering economic storms better than most companies.
1. Strong Cash Reserves
Berkshire consistently maintains massive amounts of cash on hand over $150 billion as of 2025. This cushion helps the company:
- Avoid debt during downturns
- Jump on investment opportunities when other companies are struggling
- Stay operational without needing to panic-sell assets
During the 2008 financial crisis and the COVID-19 crash in 2020, Buffett’s cash strategy allowed Berkshire to buy quality stocks at bargain prices.
2. Diversified Business Model
Another reason Berkshire weathers storms so well? Diversification.
While many companies depend on just one product or service, Berkshire earns money from:
- Insurance (GEICO, Berkshire Re)
- Transportation (BNSF Railway)
- Consumer goods (Duracell, See’s Candies)
- Energy (Berkshire Hathaway Energy)
- Stock investments (Apple, Coca-Cola, etc.)
When one sector is down, another often does well, helping stabilize the company’s overall earnings.
3. No Pressure to Pay Dividends
Since Berkshire doesn’t pay dividends, the company isn’t under pressure to send out cash during tough times. Instead, it reinvests profits back into the business or holds them as reserves. This flexibility adds resilience during downturns.
4. Conservative Financial Management
Buffett avoids debt like the plague. Berkshire carries very little long-term debt compared to other conglomerates. This gives the company breathing room when markets tighten or interest rates rise.
5. Long-Term Focus
Finally, Berkshire doesn’t cater to short-term investors. It attracts shareholders who believe in long-term wealth-building, not quick flips. This creates a more stable shareholder base and less volatility during turbulent times.
Berkshire Hathaway Is Preparing for a Post-Buffett
Warren Buffett is one of the most successful investors in history but he won’t be running Berkshire Hathaway forever. That’s why many investors are asking: What happens after Buffett?
1. Succession Plan Is Already in Place
Buffett and his long-time partner, Charlie Munger, have openly discussed their exit plans for years. The company has already named successors:
- Greg Abel, Vice Chairman of Non-Insurance Operations, is slated to take over as CEO.
- Ajit Jain, who oversees insurance operations, is also a key player.
These leaders have decades of experience at Berkshire and share Buffett’s value-driven mindset. Most analysts agree: the company is in good hands.
2. Business Model Is Bigger Than One Person
Though Buffett is the face of Berkshire, the company’s success isn’t tied to just one man. Its strength lies in a well-oiled system of decentralized management.Each subsidiary runs independently but is aligned under the Berkshire philosophy: quality businesses, long-term thinking, and efficient capital use.This structure ensures that the company can continue to perform well even without Buffett at the helm.
3. Culture of Integrity and Discipline
Buffett has embedded a strong corporate culture based on:
- Ethical leadership
- Capital discipline
- Shareholder alignment
That culture is deeply ingrained and has been passed down to the next generation of leaders, making a smooth transition more likely.
4. Continued Innovation
While Berkshire has traditionally stayed away from “trendy” investments, it has slowly evolved. Its large stake in Apple, increased focus on energy infrastructure, and cautious exploration of AI and technology trends show that the company is not stuck in the past.
The incoming leadership is expected to maintain that cautious innovation while staying true to the firm’s core principles.
5. Investors Still Have Confidence
Even with Buffett nearing retirement age, Berkshire stock continues to perform well, and institutional investors have shown continued faith in the company’s future.
Takeaway:
While Warren Buffett is irreplaceable, Berkshire Hathaway is built to endure. Its leadership pipeline, business structure, and values provide confidence that the company will thrive well into the future.
The Future of Berkshire Hathaway Stock
What’s next for Berkshire in 2025 and beyond? Here are trends to watch:
1. Succession Planning
Greg Abel’s leadership will shape Berkshire post-Buffett. His focus on operational efficiency is promising.
2. Tech Investments
Berkshire may increase tech exposure, like cloud computing or AI, to stay competitive.
3. Global Expansion
Berkshire could target emerging markets, like India, for growth.
4. Climate Initiatives
With sustainability rising, Berkshire’s energy arm may invest in renewables, boosting stock value.
Conclusion
Berkshire Hathaway is more than just a stock it’s a reliable way to invest for the long term. Led by Warren Buffett, one of the most respected minds in finance, the company has a strong and diverse business model. It holds plenty of cash and has shown it can stay strong even during tough times in the market. For beginners and experienced investors alike, Berkshire Hathaway is a smart choice if you’re looking for steady growth and security. It’s a great example of how patience, discipline, and value investing can build lasting wea
