How to Buy Berkshire Hathaway Key Points to Know

How to Buy Berkshire Hathaway Key Points to Know

Berkshire Hathaway, led by Warren Buffett, is one of the world’s most renowned investment holding companies. For Taiwanese investors, it represents a business with a solid track record of long-term value growth, and its investment strategy and management model have become a benchmark for global investors.

This article will cover everything from Berkshire Hathaway’s fundamental operating structure to practical investment methods, answering key questions for Taiwanese investors and providing actionable recommendations.

Berkshire Hathaway’s Corporate Structure and Investment Scope

Founded in 1839 by Oliver Chace as a textile company, Berkshire Hathaway underwent significant restructuring and diversification under Warren Buffett’s leadership. Today, its business spans multiple industries, including insurance, banking, consumer goods, energy, and public utilities.

Its most notable subsidiaries include Geico Insurance, Dairy Queen, BNSF Railway, Bank of America, and Coca-Cola.

Major Business Sector	Representative Companies
Insurance	Geico Insurance
Banking	Bank of America, Wells Fargo
Food & Beverage	Dairy Queen
Energy	Berkshire Hathaway Energy
Railroads	BNSF Railway

Berkshire’s success stems not only from its diversified business portfolio but also from its unique investment philosophy: centered on “value investing”, it focuses on acquiring and investing in companies with long-term growth potential. This strategy has enabled Berkshire Hathaway to maintain steady growth even during major economic downturns such as financial crises.

Berkshire Hathaway’s Investment Strategy and Core Philosophy

Berkshire Hathaway’s investment philosophy is best summarized as “value investing” selecting companies whose stock prices are below their intrinsic value for long-term holding. Warren Buffett firmly believes that successful investing is not about short-term market fluctuations but about focusing on a company’s fundamentals. These targets typically feature stable cash flow, strong brand influence, and exceptional management teams.

Another key principle of Berkshire’s strategy is to “buy quality businesses and hold them long term.” As Buffett once stated: “Our favorite businesses are those with sustainable competitive advantages, as they can deliver consistent cash flow for shareholders.” For example, Berkshire purchased shares of Coca-Cola in 1988 and has never sold them since, generating steady long-term returns.

Berkshire Hathaway: Reasons It’s Worth Investing In

Berkshire Hathaway is a company with strong competitive advantages, stable growth, and a solid financial foundation, making it a top long-term investment choice for global investors. Here are the key reasons why Berkshire Hathaway is worth investing in:

1. Stable Financial Position: With strong cash flow and solid profitability, Berkshire’s diversified portfolio provides long-term growth security.
   
2. Proven Value Investing Philosophy: Buffett’s value investing strategy, focusing on acquiring companies with competitive advantages and stable cash flow, has consistently delivered growth even during financial crises.
   
3. Core Asset Strength: Key holdings such as Geico and Coca-Cola have stable market shares and long-term profit potential.
   
4. Long-Term Growth Potential: Thanks to its strong brand influence and experienced management team, Berkshire steadily appreciates in value despite market fluctuations, making it an ideal choice for investors seeking long-term returns.

How Can Taiwanese Investors Invest in Berkshire Hathaway?

Taiwanese investors have several options to participate in Berkshire Hathaway investments:

1. Direct Purchase of US Stocks: Through international brokerage firms, investors can directly buy Berkshire Hathaway’s Class A shares (BRK.A) or Class B shares (BRK.B). Class A shares are high-priced and suitable for investors with larger capital, while Class B shares are more affordable and accessible to most retail investors.
   
2. CFD (Contract for Difference) Trading: Investors can trade Berkshire Hathaway shares via CFDs, which allows speculation on price movements without owning the actual stock.
   
3. ETF Investment: For those who prefer indirect exposure, ETFs that include Berkshire Hathaway, such as the SPDR S&P 500 ETF, provide an alternative way to invest.

For Taiwanese investors who choose to trade Berkshire Hathaway via CFDs, it is advisable to first open a trading account and use a demo account for simulated trading. This allows investors to familiarize themselves with the trading platform and strategies before moving on to live trading.

Advantages of Investing in Berkshire Hathaway via CFDs on Ultima Markets: 

1. Flexibility and High Leverage: CFD trading allows investors to participate in Berkshire Hathaway stock with relatively small capital while utilizing leverage to enhance capital efficiency. This adds greater flexibility, especially for Taiwanese investors with limited funds.
   
2. Low Entry Threshold and Fast Execution: On the Ultima Markets platform, CFD trading incurs lower transaction costs compared to direct stock purchases and enables quick execution, ensuring higher liquidity of funds.
   
3. Risk Management Tools: Ultima Markets provides stop-loss and take-profit functions, helping investors protect their capital and reduce risks amid market volatility.
   
4. No Need for Actual Shareholding: CFDs allow investors to profit from Berkshire Hathaway’s price movements without physically holding the stock, making it suitable for those who prefer not to manage actual shares.

Through Ultima Markets’ CFD platform, Taiwanese investors can trade Berkshire Hathaway with ease, benefit from professional risk management, and achieve efficient execution for stable capital growth.

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Berkshire Hathaway Stock Performance and Recent Trend Analysis

Over the past five years, Berkshire Hathaway’s Class B shares have delivered an approximate return of 60%, demonstrating strong appreciation potential. Despite the significant market volatility following the 2020 global pandemic, Berkshire’s diversified business portfolio enabled it to rebound successfully and continue growing in value.

According to Berkshire’s 2023 annual report, the company achieved total revenue of USD 354 billion, net profit of USD 35 billion, and maintained cash reserves of USD 160 billion, reflecting exceptional financial stability. This solid foundation not only allows Berkshire to remain resilient during financial crises but also positions it to actively pursue acquisition opportunities amid market volatility.

Below are some key financial data for Berkshire Hathaway: 

Year	Revenue (USD Billion)	Net Profit (USD Billion)	Cash Reserves (USD Billion)
2023	3540	350	1600
2022	3450	320	1550
2021	3250	310	1450

Investment Strategies and Risk Management for Taiwanese Investors

Although Berkshire Hathaway’s stock has shown stable performance, investors should tailor their strategies based on personal investment goals and risk tolerance. For Taiwanese investors, understanding and applying proper risk management strategies is crucial.

1. Set Clear Investment Goals: Define whether your primary objective is capital appreciation or capital preservation, then choose investment products accordingly.
   
2. Diversify the Portfolio: Avoid allocating all capital to a single asset. Following Berkshire’s diversification philosophy, build a balanced portfolio that includes stocks, bonds, and commodities.
   
3. Use Risk Control Tools: Utilize tools such as stop-loss and take-profit orders to avoid significant losses during market volatility.

On the Ultima Markets platform, investors can set stop-loss orders to effectively manage risks, which is especially important for beginners.

FAQ — Common Questions About Investing in Berkshire Hathaway

What Is the Difference Between Berkshire Hathaway’s Class A and Class B Shares?

Berkshire’s Class A shares (BRK.A) are priced at over USD 400,000 per share, while Class B shares (BRK.B) are priced at approximately 1/1500 of Class A. For retail investors with limited capital, Class B shares are a more accessible option.

Who Is Berkshire Hathaway Suitable For?

Berkshire Hathaway is ideal for long-term investors who prefer stable growth. Whether for retirement planning or capital appreciation, its value investing strategy offers consistent and reliable returns.

Conclusion — Why Should Taiwanese Investors Choose Berkshire Hathaway?

With its steady growth performance and proven value investing philosophy, Berkshire Hathaway has become a top choice for global investors. For Taiwanese investors, whether through direct US stock purchases, CFDs, or ETFs, Berkshire remains a highly worthwhile investment target.

Choosing Ultima Markets for trading not only offers diversified trading tools but also provides professional risk management solutions, helping investors achieve stable capital appreciation.