Berkshire Hathaway's Class A Shares Cost About $766,000. Here's Why the Class B Shares Exist.
If you don't have three-quarters of a million dollars available to invest, consider Class B shares.
Overview
Before the days of the internet, there would be lists of stocks with their prices in the back of the newspapers every day. Prices were typically two or three digits, and one stock would stand out curiously with its four-digit price.
Decades later, Berkshire Hathaway's (NYSE: BRKA)(NYSE: BRKB) stock price has expanded to six digits as it outperformed the market. However, that's for Class A shares. There are also Class B shares, which trade at $510. Here's what the difference is.
Details
Warren Buffett took over Berkshire Hathaway in 1965 and turned it into a massive holding company, with shares trading for $36,000 each by 1995. Most companies split their stocks well before they get to that price. One great example is Walmart, which has split its stock 12 times. If it never had, one share would be worth $658,300 today.
Source
Originally published at www.fool.com.