Interested in investing in Berkshire Hathaway? According to The Motley Fool, one reason investors flock to the company is because of CEO Warren Buffett depends on how well stock prices perform in the short term. Basically, it gives you a guaranteed return without having to wait years for growth (though you can, of course, continue to hold the stock for that long).
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One of the challenges was that many investors held on to the stock because previously they could only buy A shares. Additionally (and this is a big deal), Berkshire Hathaway A shares cost $528,000. Unless you can afford it, this share class is not affordable for most investors.
The good news is you can get a piece of the action without paying more than $500,000. Enter Berkshire Hathaway B shares. Like A shares, you can own Berkshire Hathaway stock, but at a much more affordable price of $348 per share.
Instead of selling an average of about 7,800 shares each day, A-shares trade an average of about 3 million shares per day. A more affordable price combined with higher trading volume gives you a chance to buy Berkshire Hathaway B shares.
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If you think that there are different types of ownership between A and B shares, you are wrong. A shares have more shares, or ownership rights, than B shares. So if you want to take advantage of stocks that generally perform well (never say never, because there are no guarantees in life, including investing), buying B shares might be your chance. not. A few hundred dollars isn’t small change, but it’s at least a lot less than trying to get your hands on $500,000-plus.
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This article originally appeared on GOBankingRates.com: Berkshire Hathaway’s Class A and Class B Stocks: What You Need to Know Before Investing
