Berkshire Hathaway: An Investment with Class
Over the past few weeks, Financial Joy School has been taking a look at what we believe to be some of the best stocks on the market today. If you’re new to the world of investment, or if you’re looking to invest in new stocks, here’s a stock that comes from old money and isn’t likely to tank any time soon: Berkshire Hathaway.
Who They Are
Berkshire Hathaway has its roots in two different textile firms of the 1880’s, Berkshire Cotton Manufacturing Company and Hathaway Manufacturing Company. Berkshire merged with Hathaway in 1955, and was purchased in 1965, a mere a decade later, by investment mogul Warren Buffett.
By 1985, they ceased their textile operations and had become solely a holding company for several of Buffett’s other acquisitions and investments. Buffett used his new holding company to purchase stock in other companies and acquire them to be underneath the Berkshire Hathaway umbrella.
Companies Berkshire Hathaway has acquired include Duracell, GEICO, Dairy Queen, and Fruit of the Loom just to name a few.
Two Different Classes of Stock
If you’re interested in investing in Berkshire Hathaway, there are two different classes of stock to choose from, Class A and Class B. What is the difference?
Class A stock is the gold standard of Berkshire Hathaway. One stock alone is worth upwards of $500,000 at the time of this writing, and is worth more than most people make in a few years’ time. If you own more than one Class A stock, you are likely fabulously wealthy.
Class B stock was approved by Buffett in 1996 and allows for a more reasonable sale price at about $350 per share at the time of this writing. It is more likely for the common investor to buy Berkshire Hathaway’s Class B stock. Even so, both Class A and Class B hold a piece of the company and are an excellent choice for investment purposes.
Old Money Equals Generational Wealth
Berkshire Hathaway has been around longer than even Warren Buffett himself has been alive. He took the company from a modest textile firm and built it into a worldwide conglomerate that doesn’t merely buy a failing company’s stock, it buys the whole company and turns them around. Buffett has been doing this for a very long time, 57 years to be exact, while Berkshire Hathaway itself is roughly 135 years old.
The company has been proven to have staying power, and that is the bottom line when it comes to its ironclad stocks. Whether you own Class A or Class B stock doesn’t matter, as the name of Berkshire Hathaway alone is known as one of the biggest and most trusted companies for investments in the entire world.
If you’re looking for an investment that will build your own generational wealth, why not invest in a company that has itself stood for generations? Berkshire Hathaway is the perfect investment for your long-term goals.
To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.