If You Bought 1 Share of Berkshire Hathaway When It Joined the New York Stock Exchange, Here's How Many Shares You Would Own Now
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has roots dating back to the 19th century, but its modern legacy took shape when Warren Buffett took control in 1965. Under Buffett's leadership, the struggling textile company transformed into a conglomerate spanning industries like insurance, energy, and consumer goods.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »
Let's take a closer look at how many shares Berkshire Hathaway investors would own today if they had held on to their shares since they started trading on the New York Stock Exchange.
Berkshire Hathaway's stock history
For decades, Berkshire Hathaway's stock was only available through over-the-counter markets. But on Nov. 29, 1988, it listed what are now known as its Class A shares on the New York Stock Exchange. In his shareholder letter that year, Buffett said his main motivation was minimizing investors' transaction costs.
In 1996, the company launched its Class B shares, affectionately dubbed "Baby Bs" by Buffett. The new class was introduced to prevent fund managers from creating mutual-fund-style structures that would divide Berkshire's stock into smaller, more accessible slices.
In 2010, Berkshire Hathaway acquired the railroad giant Burlington Northern Santa Fe (BNSF) in a combination of cash and Berkshire stock, prompting Buffett to initiate a 50-for-1 stock split. As a result, investors who purchased a single Class B share in 1996 would now own 50 shares.
| Berkshire Class A Shares | Berkshire Class B Shares | |
|---|---|---|
| Joined New York Stock Exchange | 1988 | 1996 |
| Stock split | Never | 50-to-1 in 2010 |
| Number of shares today | 1 | 50 |
| Voting rights | 1 vote per share | 1/10,000 vote per share |
| Recent price | $670,738 | $447 |
Data source: Berkshire Hathaway. Chart by author.
Berkshire Hathaway's Class A shares have never been split, and it's unlikely they ever will be. Buffett has often said the high price is meant to favor investors over traders. He once said, "We want to attract shareholders who are as investment-oriented as we can possibly obtain, with as long-term horizons."
Berkshire's Class A shares continue to demonstrate the benefits of Buffett's investing mentality, with its Class A shares trading near $700,000 per share.
Should you invest $1,000 in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $800,876!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
See the 10 stocks »
*Stock Advisor returns as of December 16, 2024
Collin Brantmeyer has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
Recommended Articles
