Berkshire Hathaway utilizes a dual-class share structure to balance Warren Buffett's long-term investment philosophy with the need for retail investor accessibility, as Class A shares trade at six-figure valuations.
Article explains the history and rationale for Berkshire Hathaway Class A shares and their high price.
Article discusses Class B shares creation, split, and differences from Class A.
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Warren Buffett’s Berkshire Hathaway maintains a unique dual-share structure to discourage short-term speculation while ensuring accessibility. While Class A shares command a six-figure price tag, Class B shares were introduced in 1996 to provide a more affordable entry point for retail investors. The distinction primarily centers on voting rights and price, with Class B shares undergoing a 50-for-1 split in 2010 to maintain liquidity.
The primary differences are price and voting power. Class A shares are significantly more expensive and carry greater voting rights, while Class B shares were designed to be more accessible to retail investors.