Most people see the BRK A stock price and assume it's some kind of glitch. You look at your trading app, see a number north of $600,000, and think, "Wait, is that for one share?" Yeah. It is. It’s the price of a small house in the Midwest or a very nice condo in Florida, all wrapped up in a single ticker symbol. Warren Buffett has spent decades resisting the urge to split the stock, and honestly, that’s exactly why it has become the ultimate status symbol for long-term value investors.
It’s weird, right? In a world where Apple, Tesla, and Amazon split their stocks the moment they get "too high" for retail traders to grab a piece, Berkshire Hathaway Class A stays stubbornly massive. It’s a filter. It’s Buffett’s way of making sure the people sitting at the table aren't just there to gamble on a Tuesday afternoon. They're there for the long haul.
The Reality Behind the BRK A Stock Price
The price isn't high because the company is overvalued; it’s high because it has never been split. Since Buffett took over in 1965, the value has compounded at a rate that honestly defies most logic. We're talking about a textile mill that turned into a global powerhouse owning Geico, BNSF Railway, and massive stakes in Apple and American Express. When you buy a share, you aren't just buying a stock. You’re buying a piece of an insurance empire, a massive energy grid, and a massive portfolio of private companies like See's Candies and Dairy Queen.
Think about this. If you had invested $1,000 when Buffett took the reigns, you’d be looking at a fortune that sounds like a typo. But back to the BRK A stock price. It reflects the total retained earnings of the company over sixty years. Every dollar Berkshire made was largely plowed back into the business or used to buy other businesses. It’s the purest example of the "snowball effect" Buffett always talks about.
Why the Price Tag Scares People Away (And Why Buffett Likes It)
Buffett once said that he doesn't want Berkshire to be a "gin rummy" stock. He wants shareholders who think like owners. If the price of entry is $700,000, you’re probably not going to panic-sell because a headline on CNBC looked scary. You’ve done your homework. You’re committed. This creates a very stable base of shareholders. It’s also why the volatility of the Class A shares is often lower than the broader market during minor hiccups.
The people holding these shares are often "Old Money" or institutional funds that have held for decades. They aren't looking at the daily fluctuations. They’re looking at the book value and the operating earnings of the underlying subsidiaries.
Class A vs. Class B: The Great Divide
If you don't have a half-million dollars sitting in a shoebox, you’re looking at the Class B shares (BRK.B). These were created in 1996 specifically to stop "unit trusts" from breaking up Class A shares and selling them to smaller investors for a fee. Buffett hated that. He wanted to give the "little guy" a way to invest directly without getting fleeced by middlemen.
The Class B shares are 1/1500th of a Class A share. They move in lockstep. If the BRK A stock price jumps 2%, the B shares jump 2%. But there's a catch: voting rights. Class A shares carry significantly more weight in the boardroom. If you own Class A, you’re the royalty of the Berkshire world. You get the fancy credentials for the Woodstock for Capitalists—the annual meeting in Omaha.
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What Actually Drives the Price These Days?
It’s not just hype. Berkshire’s valuation is usually tied to its "float." This is the money held by its insurance companies (like Geico and Gen Re) that hasn't been paid out in claims yet. Buffett uses this "free" money to invest. It’s a massive leverage machine that doesn't cost him interest.
Lately, the BRK A stock price has been sensitive to the massive cash pile the company sits on. Sometimes it's over $150 billion. When the market is expensive, Buffett sits on his hands. When it crashes, he goes shopping. Investors watch that cash pile like hawks. If it grows too large, some people complain he’s being too cautious. If he spends it, the stock usually pops because people trust his "buy when others are fearful" mantra.
The Elephant in the Room: Succession
Let's be real. Warren is in his 90s. Charlie Munger, his legendary partner, passed away in late 2023. The question everyone asks is: what happens to the BRK A stock price when Warren is no longer at the helm? Greg Abel is the designated successor. He’s already running the non-insurance operations. Todd Combs and Ted Weschler are handling the investments.
The consensus among analysts at firms like Edward Jones or Morningstar is that the "Buffett Premium" might shrink a little, but the company is now a self-sustaining machine. It’s decentralized. The managers of the 60+ companies Berkshire owns don't need Warren to tell them how to run a railroad or a power plant.
Technical Glitches and Market Quirks
Did you see what happened in June 2024? A technical glitch at the New York Stock Exchange (NYSE) showed the BRK A stock price down 99.9%, trading at around $185. It was chaos. People were trying to buy it up, thinking they’d just hit the lottery. The NYSE ended up canceling those trades. It was a reminder that even the most prestigious stock in the world is still subject to the gremlins in the exchange's software.
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Is It "Too High" Right Now?
To answer this, you have to look at the Price-to-Book (P/B) ratio. Historically, Buffett himself liked to buy back shares when they were around 1.2 times book value. Nowadays, he’s more flexible, buying back shares whenever he thinks they are trading below their intrinsic value.
If you see the BRK A stock price trading at a significant premium to its book value, it might be "expensive" in the short term. But for Berkshire, "expensive" is a relative term. If you’re holding for twenty years, the entry price matters a lot less than the quality of the businesses inside the wrapper.
- Operating Earnings: This is what Buffett wants you to look at. Not the net income, which gets distorted by the fluctuating value of their stock portfolio (like their massive Apple stake).
- The Apple Factor: Berkshire owns a huge chunk of Apple. When Apple moves, Berkshire moves. It’s basically a massive tech hedge fund disguised as an insurance company.
- Stock Buybacks: This is the big driver lately. Since Buffett can’t find many huge companies to buy at a fair price, he’s buying his own stock. This reduces the number of shares and increases the value for everyone else.
Actionable Steps for the Curious Investor
If you're looking at the BRK A stock price and wondering if you should jump in, or if you should stick to the B shares, here is the reality of how to handle it.
First, check your broker. Not every platform even allows you to trade Class A shares easily due to the high dollar amount and liquidity issues. If you aren't an ultra-high-net-worth individual, Class B is your path. It offers the same exposure without the need to liquidate your 401(k) for one share.
Second, watch the 13F filings. Every quarter, Berkshire has to tell the SEC what stocks they bought and sold. This gives you a roadmap of where they think the economy is going. If they are selling banks and buying energy, there’s a reason.
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Third, ignore the "price." Look at the market cap. Berkshire is a nearly trillion-dollar company. Whether that's divided into a few expensive shares or millions of cheap ones doesn't change the value of the underlying businesses.
Finally, keep an eye on the annual letter. It's usually released in February. It's the most honest communication you'll ever get from a CEO. He’ll tell you if he thinks the BRK A stock price is overvalued. He’s one of the few leaders who will actually tell shareholders to wait if things look too frothy.
You don't need to be a math genius to understand Berkshire. You just need patience. The price is just a number; the compounding is the real story. Keep your eyes on the earnings, not the ticker.