Looking to get started with stock market investing? Berkshire Hathaway is one of the largest and most valuable companies in the world, and is worth considering for anyone’s investment portfolio. Once you’ve done your research, got to know key investing principles, you’ll be ready to start buying, selling, or trading Berkshire Hathaway to improve your financial future. We’ve produced this page and other educational articles to help you make smart investment decisions on Berkshire Hathaway and other stocks.
If you’re ready to start investing, click on the links below. If you need more information to get you up to speed on everything you need to know, keep reading.
Buy Berkshire Hathaway stocks, right now
Choose an online broker to get started buying shares of Berkshire Hathaway:
Trade Berkshire Hathaway stocks, right now
Trading shares is a shorter-term approach to investing than buying shares. When trading shares of Berkshire Hathaway, you’re aiming to make money in shorter periods of time by buying low and selling high. We’ve reviewed a range of low-fee online brokers to help you make money from high-frequency, short-term trading.
How to buy Berkshire Hathaway stocks in 7 simple steps
Berkshire Hathaway is one of the most successful stocks in American history, so it pays to get to know its track record. After that, it’s good practice to review the state of the stock market to see how it’s performing and whether now is the right time to invest. Follow these pivotal steps first, and you’ll be better prepared to start buying shares.
To make sure you always know the right approach to take, we’ve made this checklist to review before you buy Berkshire Hathaway stock:
- Get to know the company. What is Berkshire Hathaway? How did it grow to become one of the biggest holding companies in the world? Is Berkshire Hathaway still making smart investment decisions as it seeks to take big positions in blue-chip companies and their stocks? The better you understand Berkshire Hathaway’s way of doing business, the better your chances of success when you buy or trade Berkshire Hathaway stock.
- Learn the basics. If you’re learning about technical analysis, you’ll want to understand concepts such as bases and follow-through days. If you want to learn key measures of fundamental strength in order to buy and hold shares for a long period, you’ll want to dig in on revenue and earnings growth.
- Share-dealing vs. trading. Share-dealing means you are buying shares in a company, such as Berkshire Hathaway. To make money through share-dealing, you want to sell your shares at a higher price than your purchase price. Share-dealing can also enable you to make money from dividends, if you buy shares in a company that issues dividends and hold onto the stock for long enough. Trading shares is a shorter-term approach, which can include day trading (buying and selling shares on the same day). When day trading Berkshire Hathaway stock, you should learn how to read its stock chart (technical analysis); fundamental strength is far less important in this instance as your aim is to read which way the market is going to move and profit off trading the stocks before those movements occur.
- Set a budget. When you start investing, you should start with a smaller budget, something like $1,000. You don’t want to be investing huge amounts until you are experienced in buying, selling, and trading stocks. Berkshire Hathaway stock now trades around $270,000 a share, so even with a big budget, buying a single share would be difficult! You’ll want to find a broker that offers fractional shares if you want to buy Berkshire Hathaway stock.
- Choose a broker. There are lots of online brokers that can handle all your trading needs, though to buy Berkshire Hathaway you need to find a broker that will sell fractional shares of its stock because of the sheer value of individual shares in Berkshire Hathaway. That aside, you want to find a broker that offers a strong reputation, low transaction costs, and an easy-to-use platform.
- Evaluate the condition of the stock market. When the stock market rises 20% or more over a period of time, that’s known as a bull market, which causes most stocks to go up too. When the stock market falls 20% or more over a period of time, that’s called a bear market, and most stocks tend to fall when that happens. Follow the market’s trends for your best chances of success, as you want to invest at a time when confidence is high and share prices are rising.
- Make your first investment. You’ve done your investment research, set an appropriate budget, found an online broker that works for you, and confirmed that market conditions are favourable – it’s time to invest. Log in to your online brokerage account, type Berkshire Hathaway’s ticker symbol (BRK.A), check that the stock’s price (or at least its fractional price!) works for your investing strategy, then click buy. Congratulations, you’ve just successfully bought Berkshire Hathaway stock.
Ways to invest in Berkshire Hathaway
There are numerous methods you can choose to buy, sell, and trade shares of Berkshire Hathaway online. Here are the two best options available:
Share-dealing involves buying and then holding shares of a company, as you try to land a larger profit by the stock steadily increasing in value over time. It’s a longer-term investing method than trading shares, which is geared toward making a quicker profit.
- Pros: With share-dealing you can focus on investment fundamentals, rather than obsessing over technical stock chart analysis. If Berkshire Hathaway shares start rising, holding for a longer period of time could lead to big gains.
- Cons: Your money’s tied up for longer, which means you might not have enough left over to pursue investment opportunities. If Berkshire Hathaway’s stock starts falling after you buy, you’ll have to decide if you want to cut your losses, or try to sit through a potentially ugly market correction.
A CFD (contract for difference) is an investment derivative that lets you speculate on the price movement of investment assets such as forex, commodities, or Berkshire Hathaway stock. When pursuing CFD trading, you own a contract based on the value of the asset you’re trading, but not the asset itself.
- Pros: When CFD trading, you can trade with leverage, which allows you to put down just a percentage of the total trade value (the CFD broker covers the rest). When trading with leverage, the size of your potential gains goes up significantly.
- Cons: CFD trading with leverage is risky and should only be done by experienced investors. While you will make more money when a stock rises, you will also see a much bigger loss when a stock falls. If you leave a leveraged CFD position open more than a day, you’ll pay overnight fees. When CFD trading, you lose the voting rights and dividends that come with owning shares of certain companies.
Get a feel for multiple investing methods so you’ll have more choices. Read our online guides, news articles, and educational courses to improve your investing knowledge, and if you’re ready to buy, click the links above.
How to buy, sell, and trade Berkshire Hathaway shares for beginners
If you’re a beginner considering buying Berkshire Hathaway stock, here are some important points to know:
Online brokerage firms provide trading platforms that allow the quick and inexpensive purchasing of shares. Buying shares is a sound approach if you want to hold your stocks for a longer period of time and build a portfolio. To buy shares, log in to your online brokerage account, type Berkshire Hathaway’s ticker symbol, and make your purchase.
When selling shares, you make money when you sell the stock at a higher price than your buy price. You can make money in two ways when selling shares: hold for as long as possible for the biggest possible profit, or sell to take quicker profits and avoid a potential downturn. Selling shares can also be a good strategy when you think you’ve made a poor early investment and want to cut your losses before they get any worse in order to reinvest the remaining capital.
If you want to move at a faster pace, you can trade shares with either a conventional online broker or a CFD broker. CFD-brokered trades bring with them some risk if you engage in leveraged trading, which allows you to trade at high volumes while only staking a percentage of that value with your own capital. Also be aware of the extra fees that CFD brokers charge in the form of overnight fees.
Our top tips for investing in Berkshire Hathaway stock
If you’re going to invest in Berkshire Hathaway stock, here are the tips from the Invezz team:
- Know your budget. Don’t invest more than you can afford to lose. It’s especially advisable to temper the size of your investment when you’re just starting out as an investor and to increase the amount when you are more experienced.
- Choose a strategy that works for you. Find an investment strategy that fits your goals. That includes not taking more risk than you can handle and whether you want to get involved in the quick action of trading stocks, or take a longer term approach with buying the shares.
- Stick to an investing plan and don’t react to emotions. Following a sound investing plan will help you overcome emotions such as fear and greed, which can affect your judgment and cause you to make bad investment decisions.
- If market conditions change, change course. When the stock market starts falling, be ready to react. Always keep the state of the broader stock market in mind when making investment decisions, rather than just getting swept up by the tides.
- Learn from your mistakes. Everyone makes mistakes when investing. The important thing is to learn from your mistakes. Review your trades, hone in on what went wrong, and make a plan so you make fewer mistakes next time.
What should I consider before buying, selling, or trading Berkshire Hathaway stock?
There are a variety of options you have available to you when buying, selling, or trading Berkshire Hathaway stock. Here’s a rundown of what to bear in mind:
- Budget size. Berkshire Hathaway’s stock price creates exceptions to many traditional investment budget rules. Still, the larger the budget (say, $100,000 or more), the more creative you can get when trading fractional shares, with day trading and CFD trading becoming more viable options.
- Assess the risks. Avoid risky investment strategies when you’re just starting out. Later on, you can try more advanced moves such as selling short, in the hopes that a stock’s price will fall. You can also use stop-loss orders to protect your investment. Here’s how that works: Say you have a big enough investment allotment to buy one share of Berkshire Hathaway at $270,000. You can then put in a stop-loss order at $243,000 per share. That way if Berkshire Hathaway’s stock falls, your stock will automatically be sold at that level – protecting you from losing more than 10% of your capital.
- Market conditions. When a bear market begins, defensive investment strategies such as bonds, commodities, and cash are advised (as opposed to loading up on stocks). If the market’s flourishing, though, you can feel more confident buying shares of Berkshire Hathaway.
- Know your investing goals. Day trading can be a good approach if you’ve learned how to read stock charts and want to make money quickly. If you have the patience to wait for bigger gains, you can always buy and hold shares. It all depends on what your long-term aims are.
- Follow emerging trends. Berkshire Hathaway often invests in (or owns) relatively stable companies, such as GEICO, Dairy Queen, and Kraft Heinz. That said, its ability to make smart bets on faster-moving stocks can also pay off, as it has with Apple. Investing in a company such as Berkshire Hathaway therefore means your capital is diversified to an extent, as the company’s value won’t be too hard hit by any one asset price changing.
What is Berkshire Hathaway?
Berkshire Hathaway is a multinational conglomerate holding company that recorded $247.5 billion in revenue in its most recent reported fiscal year (2018). Warren Buffett took over as CEO in 1970 and has since made Berkshire Hathaway a must-watch, given Buffett’s well-earned reputation as an investment guru. For more information on the company, including charts, live prices, analysis, and more, visit our Berkshire Hathaway stock price page.
Try some of our stock market courses for beginners
To learn more before investing, follow the steps outlined in our educational courses. Once you’ve learned those key lessons, you’ll be better prepared to buy shares of Berkshire Hathaway.