Berkshire Hathaway Inc. is a massive American multinational holding company led for decades by Warren Buffett. For Canadian investors, its shares represent a way to gain diversified exposure to a vast portfolio of wholly-owned businesses and major stock holdings across insurance, railroads, energy, and consumer goods. The stock trades on Canadian exchanges through various instruments, including Canadian Depository Receipts, which can be held in registered accounts like TFSAs and RRSPs. Understanding the company's structure, its investment philosophy, and the available trading options is key for Canadians considering this unique equity.
What Berkshire Hathaway Does
Berkshire Hathaway operates as a sprawling conglomerate, owning and managing a wide array of businesses across numerous sectors. Its core operations are organized into several major groups, each comprising multiple subsidiaries. The company is famously built on a foundation of property, casualty, life, accident, and health insurance and reinsurance, with GEICO and Berkshire Hathaway Reinsurance Group being prominent examples. Another central part of its operations is its freight rail transportation business, BNSF Railway, which operates one of the largest railroad systems in North America. The utilities and energy segment, managed by Berkshire Hathaway Energy, generates, transmits, and distributes electricity from a diverse mix of sources including natural gas, coal, wind, solar, and hydroelectric power. Beyond these pillars, the company owns a vast collection of manufacturing, service, and retail companies. These range from manufacturers of building products, industrial components, and chemicals to retailers of furniture, automobiles, and jewellery, as well as providers of aviation training and logistics services. This immense diversification is a defining characteristic of the Berkshire Hathaway investment approach, seeking to own quality businesses with durable competitive advantages.
History and Investment Philosophy
He ultimately took control and transformed it into the investment and holding vehicle it is today. The core philosophy that guided the company for decades centred on value investing, seeking to purchase stakes in wonderful businesses at fair prices and holding them for the long term. This strategy applied both to acquiring entire companies, which become operating subsidiaries, and to purchasing significant minority positions in publicly traded stocks. A key tenet was maintaining a fortress-like balance sheet with substantial cash reserves, allowing the company to act decisively during market downturns. This conservative financial management has contributed to the stock's reputation as a relative safe haven during periods of economic stress. In 2025, Warren Buffett announced plans to step down as CEO, marking a significant transition for the company. Despite this change, recent investment activity, such as the continued accumulation of stakes in companies like homebuilder Lennar, suggests the fundamental strategy of patient capital allocation remains in place.
Major Business Holdings and Investments
Berkshire Hathaway's portfolio is a mix of wholly-owned subsidiaries and large public equity stakes. The company's controlled businesses provide a steady stream of operating earnings. Major wholly-owned subsidiaries include the GEICO auto insurer, the BNSF Railway, Berkshire Hathaway Energy, and a large manufacturing and retail group featuring companies like Precision Castparts, Lubrizol, Dairy Queen, and See's Candies. The company also holds substantial minority positions in a number of prominent publicly traded companies. These stock investments are famously managed to allow the underlying businesses to operate independently, with Berkshire as a supportive, long-term shareholder. Recent portfolio activity highlights this ongoing strategy. For instance, Berkshire Hathaway increased its stake in homebuilder Lennar, raising its ownership to approximately 11 percent. In a notable departure from its traditional value focus, the company also made a series of investments in the technology company Bending Spoons, committing a total of 930 million dollars by October 2025 for a roughly 4 percent stake. This blend of classic industrial holdings with selective new investments defines the evolving nature of the Berkshire portfolio.
The scale of these operations is reflected in the company's financial results. In 2025, Berkshire Hathaway reported revenue of 371.44 billion dollars. Its earnings for the same year were 66.97 billion dollars. The company's massive size and diversification mean its performance is often viewed as a broad barometer of the American economy.
Trading on Canadian Exchanges
Canadian investors can gain exposure to Berkshire Hathaway without needing to trade directly on US exchanges. The primary vehicle for this is the Berkshire Hathaway Canadian Depository Receipt, which trades on the Toronto Stock Exchange. The CDR represents an interest in the underlying US-listed Class B shares of Berkshire Hathaway but is denominated and traded in Canadian dollars. One popular version is the Berkshire Hathaway CDR (CAD Hedged), designed to mitigate the impact of currency fluctuations between the Canadian and US dollars on the investment's return. This instrument trades under the symbol BRK on the TSX. Another listed instrument is the BMO Canadian Covered Call Berkshire Hathaway ETF, which trades under the symbol ZBRK. This ETF holds the US shares and employs a covered call strategy, which generates income but may limit upside potential. The direct US shares, Berkshire Hathaway Class B, trade under the symbol BRK.B on the New York Stock Exchange. Canadians can purchase these directly through a brokerage that offers US dollar accounts, but this involves currency exchange and may have different tax implications within registered accounts.
- Berkshire Hathaway CDR (CAD Hedged): Ticker BRK on TSX, traded in Canadian dollars.
- BMO Covered Call ETF: Ticker ZBRK, uses an options strategy for income.
- Direct US Shares (Class B): Ticker BRK.B on NYSE, requires US dollar trading.
- TSX listing BRK.NE also provides a quote for the CDR instrument.
Holding Berkshire Stock in Canadian Accounts
Canadian investors have several options for holding Berkshire Hathaway exposure within their investment portfolios, including tax-advantaged registered accounts. The Berkshire Hathaway CDR (BRK) is a Canadian security, making it eligible for registration in both Tax-Free Savings Accounts and Registered Retirement Savings Plans. Holding the CDR in a TFSA allows any capital gains or dividends to accumulate and be withdrawn completely tax-free. Within an RRSP, the investment grows on a tax-deferred basis. The currency-hedged feature of the BRK CDR can be particularly appealing for investors who wish to isolate their investment returns from the volatility of the US dollar Canadian dollar exchange rate. In contrast, holding the direct US-listed BRK.B shares in an RRSP is straightforward due to the tax treaty between Canada and the United States, which exempts US withholding tax on dividends. However, holding US stocks in a TFSA does not receive this exemption, meaning US withholding tax would be applied to any dividends. Berkshire Hathaway does not pay a cash dividend, so this withholding tax consideration is not currently a factor for income-focused investors, but it could be relevant if the company's policy changes in the future.
Dividend Policy and Financial Considerations
Berkshire Hathaway has a longstanding policy of not paying a cash dividend on its common shares. This approach is rooted in the belief that the company can generate superior returns for shareholders by reinvesting all profits back into the business, whether through funding the growth of its subsidiaries, making new acquisitions, or buying back its own shares. The company has, on occasion, authorized share repurchase programs when management believes the stock is trading below its intrinsic value. This allows the company to return capital to shareholders in a tax-efficient manner while increasing the ownership stake of remaining shareholders. For Canadian investors, this means the total return from an investment in Berkshire Hathaway is derived entirely from capital appreciation. The lack of a dividend simplifies the decision between holding the US shares or the Canadian CDR in registered accounts, as there is no dividend income subject to US withholding tax to consider. Investors should note that the financial performance of the conglomerate is consolidated, meaning the revenue and earnings figures represent the total from its vast collection of businesses, not just dividend income from holdings.
Key Risks for Investors
Investing in Berkshire Hathaway carries several specific risks that Canadians should consider. The company's performance is heavily tied to the health of the broader US economy, given its exposure to cyclical industries like housing, manufacturing, and rail freight. A significant economic downturn could negatively impact earnings across many of its subsidiaries. The sheer size of Berkshire Hathaway itself presents a challenge, as finding acquisitions large enough to move the needle on its massive capital base becomes increasingly difficult, potentially slowing future growth. The recent leadership transition away from Warren Buffett introduces an element of succession risk, as the future performance hinges on the capital allocation skills of a new management team. For Canadians using the CDR, there is a specific structural risk related to the hedging mechanism, which may not perfectly offset currency movements and can involve costs that slightly detract from returns. Furthermore, the stock is often perceived as a safe haven, which can lead to high valuations that limit near-term upside potential. The company's recent investments in growth-oriented technology firms like Bending Spoons also represent a strategic shift that departs from its historical value focus, introducing new execution and valuation risks to the portfolio.
Recent Strategic Moves and Portfolio Activity
Berkshire Hathaway's investment decisions are closely watched as signals of its strategic direction. Recent activity shows a continuation of its methodical capital deployment alongside some new ventures. The company has been steadily increasing its investment in the homebuilding sector, raising its stake in Lennar Corporation to approximately 11 percent by the third quarter of 2025. This aligns with its existing ownership of Clayton Homes, reinforcing a substantial presence in the housing market. In a more notable development, the company made a series of investments in the Italian technology holding company Bending Spoons. Following an initial investment of 600 million dollars during Bending Spoons' July 2025 initial public offering, Berkshire committed an additional 330 million dollars in October of the same year, bringing its total commitment to 930 million dollars. This move into a digital media and software company, which owns assets like AOL and Vimeo, marks a discernible shift from the company's traditional industrial and consumer staple investments and reflects an adaptation to the modern economic landscape. The company also continues to expand its core insurance operations geographically, with Berkshire Hathaway Specialty Insurance announcing its entry into the Polish market in 2025.
Frequently asked questions
What is the Berkshire Hathaway CDR?
The Berkshire Hathaway Canadian Depository Receipt is a security that trades on the Toronto Stock Exchange under the symbol BRK. It represents an interest in the underlying US-listed Class B shares of Berkshire Hathaway but is bought and sold in Canadian dollars. A common version is the CAD-hedged CDR, which aims to reduce the investment's exposure to fluctuations between the US and Canadian currencies. This allows Canadian investors to gain exposure to Berkshire Hathaway more easily.
Can I hold Berkshire Hathaway stock in my TFSA?
Yes, you can hold Berkshire Hathaway in a TFSA by purchasing the Canadian Depository Receipt on the TSX. Since the CDR is a Canadian security, it is fully eligible for TFSAs and RRSPs. Holding the US-listed shares directly in a TFSA is also possible. However, any dividends paid would be subject to US withholding tax, though Berkshire does not currently pay a dividend.
Does Berkshire Hathaway pay a dividend?
No, Berkshire Hathaway does not pay a cash dividend on its common shares. The company's philosophy, established under Warren Buffett, has been to reinvest all profits back into the business. This strategy funds growth, makes acquisitions, or repurchases shares. Therefore, an investor's return is based entirely on the appreciation of the stock price over time.
What are the main businesses owned by Berkshire Hathaway?
Berkshire Hathaway owns a vast array of businesses across several sectors. Its largest operations include insurance companies like GEICO, the BNSF Railway freight railroad, and the Berkshire Hathaway Energy utility group. It also wholly owns many manufacturing, retail, and service companies such as Precision Castparts, Dairy Queen, and Fruit of the Loom. The company engages in insurance, freight rail transportation, and utility businesses.
What is the difference between BRK on TSX and BRK.B?
BRK on the TSX is a Canadian Depository Receipt that represents Berkshire Hathaway stock and trades in Canadian dollars. BRK.B is the direct Class B share of Berkshire Hathaway that trades on the New York Stock Exchange in US dollars. Canadians can buy BRK for simplicity and currency hedging. Buying BRK.B requires a US dollar account and involves direct currency exchange.
What are the risks of investing in Berkshire Hathaway?
Key risks include exposure to US economic cycles and the challenge of finding growth-accretive acquisitions for such a large company. There is also the ongoing leadership transition following Warren Buffett's departure. For CDR holders, there is currency hedging risk. The stock's premium valuation as a perceived safe haven may also limit short-term gains.
Sources and further reading
- Berkshire Hathaway Inc. (BRK.TO) ca.finance.yahoo.com
- Berkshire Hathaway (TSX:BRK) Stock Price & Overview stockanalysis.com
This article explains how things work and is not financial, tax or legal advice. Rules, limits and rates change, so check the current figures with the Canada Revenue Agency, your province or your financial institution before you act.