Understanding the Value of BRK-A Stock

What if you wanted to buy a single share of a company, but it cost more than a new house? That’s not a hypothetical. For Warren Buffett’s famous company, the cost of one share of Berkshire Hathaway regularly trades for over $600,000. This Class A stock, known on the market by its ticker symbol BRK-A stock, is the most expensive publicly traded share in the world.

Seeing a price tag that looks more like a phone number immediately raises a key question: Why is Berkshire Hathaway A so expensive? This isn’t an accident or some strange market fluke. In practice, this reality is the direct result of a specific, decades-long strategy from Buffett himself, a deliberate choice designed to attract a certain kind of investor and send a clear message.

The answer, it turns out, is simpler than you might think. Uncovering the reason behind this unique price doesn’t just solve a financial puzzle; it reveals a core tenet of Warren Buffett’s entire investment philosophy. It’s a lesson that separates long-term partners from short-term players, and it all starts with one simple decision he refused to make.

Meet the Mind Behind the Six-Figure Stock Price

The incredible price of BRK-A isn’t an accident; it’s the result of a deliberate plan crafted by one man: Warren Buffett. Known widely as the “Oracle of Omaha” for his uncanny investing success, Buffett has guided Berkshire Hathaway for over half a century. His approach, however, is built on a simple, powerful idea that goes against the grain of typical Wall Street thinking. This core philosophy is the key to understanding everything about his company, including its famously high stock price.

For Buffett, buying a stock isn’t like placing a short-term bet. He believes that when you buy a share, you are buying a small piece of an actual business. It’s a concept he calls his long-term holding strategy. Think of it like becoming a part-owner in a local shop you believe in—you’re not there to flip your stake for a quick profit, but to share in its success for years to come. He views his shareholders as partners on a long journey together.

Because he wanted to attract these dedicated, long-term partners, Buffett made a choice that set Berkshire Hathaway apart. He wasn’t interested in people who would trade the stock frantically based on daily news. Instead, he wanted owners who were focused on the company’s growth over decades. This decision was a powerful filter, and it’s the direct cause of the stock’s unique price tag. The answer lies in a simple choice about slicing the company “pizza.”

The Billion-Dollar Pizza: The Simple Reason BRK-A Is So Expensive

To understand that six-figure price tag, imagine the entire Berkshire Hathaway company is a giant pizza. Most publicly traded companies, as they become more valuable, decide to perform a “stock split.” This is like taking their pizza, which might have eight big slices, and cutting it into sixteen or even thirty-two smaller, more affordable slices. The pizza’s total value doesn’t change, but now more people can easily buy a piece.

But Warren Buffett, wanting those long-term “partners,” did the exact opposite. He chose to never split the BRK-A pizza. He wanted to attract investors who were serious enough to buy a whole, hearty slice and hold onto it for the long run, rather than traders who might just nibble on a small piece for a day. Keeping the price high was his way of filtering for commitment.

Over the decades, as Berkshire Hathaway became one of the most successful companies in the world, the value of the entire pizza grew immensely. Because Buffett never cut it into smaller pieces, the price of each original, giant slice simply kept climbing. That’s the simple reason a single share of BRK-A is so expensive today: it represents an original, uncut piece of an incredibly valuable company.

This naturally leads to a big question: does this mean you have to be a millionaire to own a piece of Buffett’s company? For a long time, the answer was close to yes. But as demand grew, Buffett eventually offered a solution—a new, much smaller slice of the pie for everyday investors.

So, How Can a Regular Person Own a Piece of Berkshire?

For a long time, the steep price of BRK-A did, in fact, keep most people on the sidelines. But as Berkshire’s fame grew, so did the number of people who wanted to invest alongside Warren Buffett, even with smaller amounts of money. Eventually, he offered a brilliant solution. Instead of cutting up the original Class A “pizza slices,” he created a brand-new class of stock, known as Berkshire Hathaway Class B shares, which you can find under the ticker symbol BRK-B.

The difference in price is staggering. While an “A” share costs more than a house, a “B” share typically trades for a few hundred dollars. This was a deliberate move to make ownership accessible. Think of it this way: Buffett kept the original, uncut pizza intact for his long-term partners but essentially baked a whole new pizza and cut it into thousands of bite-sized slices for everyone else. This opened the door for everyday investors to become part of the Berkshire family.

Today, owning a piece is more achievable than ever. Most modern brokerages allow you to buy “fractional shares,” which means you don’t even have to come up with the money for a full BRK-B share. You can invest as little as a few dollars to own a tiny sliver. So while the price tag is vastly different, you’re still an owner in the exact same collection of companies. But this raises a natural question: besides cost, what’s the real difference between owning Class A versus Class B stock?

A vs. B: What’s the Real Difference Besides Price?

Beyond the eye-popping price tag, the most significant difference between a Class A and a Class B share comes down to influence. Owning stock makes you a part-owner of a business, which typically gives you a say in major decisions, like electing the board of directors. This is known as having voting rights, and it’s the key that unlocks the purpose behind Berkshire’s two-tiered system. It’s not just about cost; it’s about control.

With Berkshire Hathaway, that difference in control is intentional and dramatic. A single Class A share carries vastly more voting power than a single Class B share. This structure was specifically designed by Buffett to ensure that the company’s direction is guided by a stable group of long-term partners—the original A-shareholders—rather than being swayed by the short-term whims of a constantly changing market. It keeps the decision-making power concentrated with those who have the most invested in the company’s long-term success.

For an everyday investor who owns the more accessible B-shares, this setup actually provides a sense of security. It means the company is more likely to stick to the patient, steady philosophy that made it a legend. So, while your individual vote is smaller, you can be confident the ship is being steered by the very principles you invested in. This begs the question: what exactly do you own when you buy a share?

What Do You Actually Own? A Look Inside Berkshire’s Shopping Cart

When you think of a big company, you probably picture it making a specific product—Ford makes cars, and Coca-Cola makes soda. Berkshire Hathaway is different. It doesn’t manufacture a single “Berkshire” product. So, what is it, really? The simplest way to understand it is as a holding company, which is a formal name for a business that owns other businesses. Think of it less like a factory and more like a giant, carefully chosen shopping cart.

This “shopping cart” is filled with dozens of companies, many of which you’ll recognize instantly. By purchasing a share of Berkshire, you become a part-owner of everything inside that cart. While the full list is extensive, some of its most famous holdings include:

• GEICO: The car insurance company known for its friendly gecko.
• Duracell: The battery brand that powers your remote controls and toys.
• Dairy Queen: The classic spot for a Blizzard or an ice cream cone.
• See’s Candies: A beloved West Coast chocolatier.
• A huge stake in Apple: While Berkshire doesn’t own Apple outright, it’s one of the largest investors in the maker of the iPhone.

In essence, owning a share of Berkshire is like buying a pre-made portfolio of some of America’s strongest businesses. Instead of picking individual stocks, you’re trusting that the collection of companies inside the cart will grow in value together over time. This approach has a huge impact on how Berkshire handles its profits. While most companies might send you a check from their earnings, Berkshire has a very different idea of what to do with its cash.

Why You Don’t Get a Check: Berkshire’s No-Dividend Policy

When a company you own, like Dairy Queen or GEICO, turns a profit, that money has to go somewhere. Many companies choose to share the success directly with their owners by paying out a dividend—a small cash payment sent to each shareholder, like a thank-you for their investment. It’s a common and popular practice. But if you’re wondering, “does Berkshire Hathaway pay dividends?” the answer is a firm no. Warren Buffett has a different plan for that cash.

Instead of mailing out checks, Buffett believes he can create more value by keeping the profits inside the company. Think of it this way: if your “shopping cart” of businesses earns a billion dollars, you could take a few dollars in cash. Or, you could let the master shopper, Buffett, use that billion dollars to buy another fantastic company to add to the cart. This strategy of using reinvested profits is the core of his philosophy. He is famously confident that he can make that money grow faster inside Berkshire than you could if you received it as a small dividend.

This long-term strategy is the engine that has driven Berkshire’s stock value for over 50 years. By constantly adding more profitable businesses to its collection, the total value of the company grows, which in turn makes each individual share worth more. Shareholders don’t get a quarterly check, but their piece of the pie gets bigger and bigger over time. This focus on long-term partnership over short-term payouts has created a unique culture, turning the company’s annual meeting into a massive festival for its dedicated followers.

More Than a Stock: What Is the “Woodstock for Capitalists”?

That unique culture of partnership is on full display once a year in Omaha, Nebraska. Instead of a stuffy corporate report, the Berkshire Hathaway annual meeting is a massive, weekend-long festival that draws tens of thousands of devoted shareholders from around the globe. It has become so famous for its celebratory atmosphere and learning opportunities that it earned the nickname the “Woodstock for Capitalists.” It’s an event unlike any other in the financial world.

The main attraction isn’t a boring slideshow. For hours, attendees get to listen as Warren Buffett and his leadership team answer unfiltered questions on business, life, and investing. This focus on education, also reflected in Warren Buffett’s famous annual letter to shareholders, is central to the company’s appeal. It treats every owner, big or small, as an intelligent partner who deserves to understand exactly what they own and why.

Ultimately, this famous gathering reveals the true spirit of the company. It’s about building a community of long-term thinkers, not attracting short-term traders looking to make a quick buck. This philosophy is the very reason for the company’s famous high stock price, a final lesson in the difference between price and value.

The Big Secret: What BRK-A’s Price Really Teaches Us

The story of BRK-A’s price is more than financial trivia; it’s a lesson in long-term thinking. The six-figure price tag isn’t a barrier to keep people out, but a filter designed to attract partners who believe in a company’s journey, not just its daily stock chart. The decision to never split the original shares cemented a culture of stability and commitment.

This philosophy is the foundation of Berkshire Hathaway’s success. By reinvesting profits instead of paying dividends, the company compounds its value over decades. By creating the accessible BRK-B shares, it opened the door for everyone to participate without compromising the original vision.

The next time you see a news alert about BRK-A, you’ll recognize the core idea: the powerful results of a long-term holding strategy. The ultimate lesson from Warren Buffett isn’t hidden in a complex formula—it’s displayed openly in his company’s structure. True, lasting value is built on patience.