Should You Buy Class A Shares of Berkshire Hathaway Below $700,000?

Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), one of the largest companies in the world, has two classes of shares. The original Class A shares have been around since Berkshire went public and have enjoyed an incredible run, with each share now trading at a good deal more than a half-million dollars.Berkshire introduced the Class B shares in the 1990s to make the stock more affordable to smaller investors. However, with the advent of fractional shares, investors can now purchase as little as they want of the Class A stock, making it accessible for all. Should people invest in the Class A shares of Berkshire while they trade for less than $700,000? Let's take a look.Stock prices don't mean a whole lot when investing in stocks. For instance, a company whose shares trade at a high price can also have a low market cap and valuation. So, just because Berkshire Class A shares trade at a high price, it doesn't necessarily mean they are overvalued. One way Berkshire is typically valued is on a price-to-tangible book value (P/TBV) basis, which looks at a company's market value compared to its net worth. This is a common way to value financials such as insurance companies and banks, which makes sense because Berkshire owns one of the largest insurance companies in the U.S. with Geico.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool