Berkshire Hathaway is a renowned holding company, as it is a business, which owns various diverse interests. Many investors are attracted to making deals with the incorporation, as the CEO and Chairman of the company – Warren Buffett, seek and manages the investments. Buffet is a famous and skilllful investor, and is known as the “Oracle of Omaha” for making many successful investments for his company over the years.
Once you make an investment with this company, you will own those companies that Buffet and his team, including his long-time investment partner – Charlie Munger, have hand-picked.
To make an investment with Berkshire Hathaway, follow this guide to see what you have to do:
Determine your Share Class
When you buy a stock with Berkshire Hathaway, you will need to decide which share class to pick. For an investor, the A shares of Berkshire traded for $210,000 each in June 2015, while the B shares were traded at $140. Thus, the A shares traded for 1,500 times that of the share price of B shares. Do know that Share A holders can convert into Share B at any point, but Share B will not be allowed to. Having A shares has more weight in casting votes and annual meetings. B shares have only one vote.
Open an Account
Before making the investment, you will be asked to open an account with the financial services firm. For new investors, who need help with investment decisions, consider a full-service firm, like the UBS Financial Services, or the Merrill Lynch. On the other hand, Scottrade and Charles Schwab have limited service, but they charge minimal for the investment purchase.
Next, you will be set to make a trade. Now that you have your share class, a broker, and an account, you will ask your broker about the number of shares you want to buy. You should have enough money to cover the cost of the shares. There will also be a commission fee for the broker.
As you have bought your stock, you will have three business days. After this you will have a settlement date, in which the purchase price will be covered. As you enter your trade, you will have made your investment with Berkshire Hathaway successfully.