Is Berkshire Hathaway a closed-end fund?
Berkshire is not a closed-end fund, but has similar characteristics.
Berkshire Hathaway is a multinational holding company and conglomerate run by the investor, chairman and CEO Warren Buffett. The company was originally a textile manufacturer, but now owns or holds controlling interests in dozens of big companies including Heinz, Benjamin Moore, Geico and more.
In some ways, Berkshire Hathaway is like a mutual fund or even a hedge fund. What it most certainly isn't is a typical company. Buffett's unique approach has influenced the company in dramatic ways, most of which have been good for investors.
Key Takeaways. Berkshire Hathaway Class A is the company's original stock offering, known for its stratospheric price per share. Berkshire Hathaway Class B shares, first issued in 1996, are more modestly priced and have a correspondingly modest share of equity value in the company.
Some key differences between Berkshire Hathaway and a typical hedge fund: Hedge funds aim to generate high returns by making risky investments and using leverage. They charge clients a 2% management fee and 20% of profits. Berkshire does not charge any fees and Buffett discourages leverage.
Berkshire Hathaway, with legendary investor Warren Buffett at its helm, is one of the U.S.'s most iconic stocks — but that doesn't guarantee it's a good fit for your portfolio.
Berkshire Hathaway, Inc. is a holding company, which engages in the provision of property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, and retailing services.
Instead of around an average of 7,800 shares sold each day for A shares, around 3 million shares are traded on an average day. Combined with the more affordable price and higher trade volume, you have a better shot of buying the Berkshire Hathaway B share.
Berkshire Hathaway is a diverse holding company with well-known subsidiaries like GEICO and Dairy Queen. The company's top three individual shareholders are Warren Buffett, Susan Buffett, and Ronald Olson. The three main institutional shareholders are Vanguard, BlackRock, and State Street.
It owns a variety of well-known private businesses, such as GEICO, and also has minority interests in public companies, such as Apple. Risks of being a Berkshire investor include issues of regulatory challenges and being a conglomerate, as well as the performance of successors when Warren Buffett retires or dies.
Can anyone buy BRK B?
Anyone can invest in Berkshire Hathaway if they have enough money to buy at least one Class B share (about $360 in late 2023). For comparison, hedge funds are open only to accredited investors, meaning those with a high income or net worth and who can meet the fund's minimum investment, which can be $1 million or more.
Just know that a $250 investment is no longer even possible. The company's B shares -- its cheapest share class -- now trade at around $400. If you can meet that minimum investment, putting the money into Berkshire still makes a ton of long-term sense.
Berkshire issued Class B shares in 1996 to make Berkshire's stock more accessible to smaller investors. Both classes of shares attract different shareholders for different reasons. But these days you can purchase either, given the power of technology and how it has made purchasing fractional shares much easier.
| Holder | Shares | Date Reported |
|---|---|---|
| Vanguard Group Inc | 145.51M | Dec 31, 2023 |
| Blackrock Inc. | 105.22M | Dec 31, 2023 |
| State Street Corporation | 69.29M | Dec 31, 2023 |
| Geode Capital Management, LLC | 34.17M | Dec 31, 2023 |
Jefferies Financial Group (formerly Leucadia National Corporation) is a competitor of Berkshire Hathaway where investments are concerned.
Key Points. Berkshire delivers solid returns with less volatility. It owns a high-quality portfolio of companies and publicly traded stocks. Buffett's company has a massive cash position that it can use to capitalize on opportunities in the next downturn.
Ronald L. Olson owns the most shares of Berkshire Hathaway A (BRK. A).
American Express is one of Buffett's longest-standing investments. He began buying the stock in 1991, and it has been a home-run investment for Berkshire. Since the beginning of 1992, AXP stock has generated a total return of more than 7,000%.
Berkshire Hathaway Dividend Yield: 0.00% for April 19, 2024.
Berkshire Hathaway is a large cap holding company that owns dozens of businesses, cash and equity investments. Reminder: it's not a mutual fund or an ETF fund. It's a corporation with Warren Buffett as Chairman and CEO.
What is a fair price for BRK B?
One of the biggest reasons why BRK. A is so expensive is because CEO Warren Buffett has decided against a stock split. A stock split is when a company splits its existing stock to create more shares, often resulting in a lower share price.
Over the course of the past few years, Warren Buffett's Berkshire Hathaway (NYSE: BRK. A) (NYSE: BRK.B) has measurably outperformed the S&P 500 (SNPINDEX: ^GSPC).
Berkshire Hathaway B (BRK.B) does not pay a dividend.
Berkshire's 18% year-to-date returns top the S&P 500's 7% gain, and the results grow more eye-popping as the time frame extends: Berkshire's 271% return over the last decade and 50,799% surge over the last 40 years smashes the S&P's 232% and 4,213% respective gains, according to FactSet data.
