Difference Between Berkshire A and B

By: | Updated: Oct-16, 2022
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Berkshire A and B are two classes of stocks in Berkshire Hathaway Inc. They are listed under Berkshire Hathaway B stock. However, there is a difference between the two.

The difference is that Berkshire A has a higher dividend yield and will be sold at a higher price than Berkshire B. If you have purchased Berkshire A stock, you may be interested in selling it or trading it with other investors as well as getting your investment back as quickly as possible.

Summary Table

Berkshire A Berkshire B
Refers to Class A stocks of Berkshire Hathaway Refers to Class B stocks of Berkshire Hathawa.
Is more expensive Is less expensive
Can be converted to Class B stocks Cannot be converted to Class A stocks

Difference Between Berkshire A and B

Definitions

Berkshire Hathaway Class A shares were the first shares issued by the company in 1976; they were valued at a price that was considered exorbitant.

Class B Berkshire Hathaway shares, which were launched in 1995, are significantly cheaper than the Class A shares, and they are worth less than the Class A shares.

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It is possible to convert your Class A shares anytime a Class A shareholder wants to do so. It is forbidden to gain Class A shares by selling Class B shares and then buying the equivalent in Class A. Class B owners cannot sell the shares that they currently hold and then buy more shares in the class that they plan to purchase.

Difference Between Berkshire A and B

The difference between Berkshire A and Berkshire B Stock may be traced back to their respective value and classification. Berkshire B is a class B stock while Berkshire A is a class A stock.

The class of the stock plays an important role in determining the price. It determines the market value of the company and its potential earnings.

The stocks are ranked according to their intrinsic value. The intrinsic value of a stock is calculated based on several factors such as assets, profits, dividends, and growth rates. The two types of stocks have different values and also different growth rates.

The stocks are considered different from each other due to their differences in performance and market values. Even though both the stocks are classified under Berkshire Hathaway, they do not show similar trends in the market values over time.

Moreover, although both these companies are very well known and have high-quality managers running them; they are not comparable in terms of size or revenue generation (Warren Buffett).

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