Berkshire Hathaway: Class A vs. Class B Shares
What's the Difference?
The most significant difference between Berkshire Hathaway's class A (BRK.A) and class B (BRK.B) shares lies in their price and voting rights. Class A shares command a much higher price tag, making them inaccessible to many investors. However, they also carry significantly more voting power, with each share carrying 10,000 votes compared to just one vote for class B shares.
Investment Considerations
When deciding which Berkshire Hathaway share class is right for you, consider your investment goals and strategy. Class A shares are more suitable for long-term, value-oriented investors who seek voting influence and are willing to pay a premium for it. Class B shares, on the other hand, are more affordable and suitable for investors who prioritize liquidity and a more balanced portfolio.
Performance and Value
Despite their price and voting power differences, both class A and class B shares have historically performed similarly, tracking Berkshire Hathaway's underlying business performance. The company's track record of consistent growth and value creation makes both classes attractive investment options.
Conclusion
The choice between Berkshire Hathaway's class A and class B shares ultimately depends on individual investor preferences. Class A shares offer greater voting power and may appeal to long-term, value-focused investors, while class B shares provide a more accessible entry point with similar performance potential.
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