Berkshire Hathaway Inc. is a massive American multinational conglomerate holding company known for its long-term value investing philosophy under the leadership of Warren Buffett. For Canadian investors, the company represents a way to gain diversified exposure to a wide array of businesses, from insurance and railroads to energy and consumer goods. Berkshire Hathaway's shares are accessible to Canadians through several listings on the Toronto Stock Exchange, including Canadian Depositary Receipts (CDRs) that are hedged to the Canadian dollar. Understanding the company's structure, its various share classes, and how to hold them in registered accounts is key for investors considering this stock.
What Berkshire Hathaway Does
Berkshire Hathaway is a holding company that owns a vast collection of subsidiaries engaged in diverse business activities. Its operations are broadly grouped into several core sectors. The company is a giant in the insurance and reinsurance industry, providing property, casualty, life, accident, and health coverage. Its freight rail transportation business operates extensive railroad systems across North America. In the utility sector, Berkshire Hathaway generates, transmits, and distributes electricity from a wide range of sources including natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal. The company also operates major natural gas distribution and storage networks with interstate pipelines and liquefied natural gas facilities. Beyond these capital-intensive businesses, Berkshire Hathaway owns a sprawling array of manufacturing and consumer companies. These include manufacturers of building products, industrial components, confectionery, apparel, and recreational vehicles, as well as retailers of automobiles, furniture, and electronics. This conglomerate structure is designed to generate strong, consistent cash flows from its operating businesses, which are then used for further acquisitions and investments in publicly traded securities.
History and Evolution of the Conglomerate
Berkshire Hathaway was incorporated in its modern form in 1998, with its headquarters in Omaha, Nebraska. Under his leadership, the company transformed from a struggling textile mill into the colossal conglomerate it is today by strategically acquiring insurance companies and other businesses with durable competitive advantages. A significant recent transition occurred when Warren Buffett told shareholders at the May 2025 annual meeting that he planned to step down as CEO at the end of that year. This marked the end of an era for the company he guided for decades. Despite this leadership change, the company has continued to follow its established investment playbook, making substantial new investments such as its commitment to the technology company Bending Spoons. The company's investment strategy has historically focused on value, though recent moves into growth-oriented equities like Bending Spoons indicate an evolution in its approach under new management.
Major Business Segments and Holdings
Berkshire Hathaway's portfolio is divided into major operating segments and a large portfolio of equity investments. The insurance group is foundational, including giants like GEICO and Berkshire Hathaway Reinsurance Group, which provide steady underwriting profits and float for investments. The Burlington Northern Santa Fe (BNSF) Railway is one of the largest freight rail networks in North America. Berkshire Hathaway Energy is a major utility operator with a vast portfolio of power generation and natural gas infrastructure. The manufacturing, service, and retailing segment is exceptionally diverse. It includes building products manufacturers like Clayton Homes and Benjamin Moore, industrial companies such as Precision Castparts, and consumer brands like Dairy Queen, Duracell, and Fruit of the Loom. The company also holds significant minority stakes in other public companies. Recent notable investments include building an 11.2 percent stake in the homebuilder Lennar and making a series of investments totalling $930 million in the Italian technology firm Bending Spoons. This mix of wholly-owned subsidiaries and strategic public stock holdings creates a uniquely diversified enterprise.
Stock Listings and Tickers for Canadian Investors
Canadian investors have multiple avenues to purchase Berkshire Hathaway shares, each with different characteristics. The primary US-listed shares are the Class B common stock, which trades on the New York Stock Exchange under the ticker BRK-B. These shares are priced in US dollars. For investors seeking exposure in Canadian dollars without direct currency risk, the Toronto Stock Exchange offers Canadian Depositary Receipts. Berkshire Hathaway CDRs trade under the tickers BRK.TO and BRK.NE. These securities represent a beneficial ownership interest in a pool of Berkshire Hathaway Class B shares and are designed to provide a currency hedge, meaning the value is adjusted for fluctuations between the Canadian and US dollars. The BMO Canadian Dividend ETF that holds Berkshire Hathaway is another indirect option, tickered ZBRK. When choosing between the US-listed shares and the CDRs, investors must consider currency conversion costs, hedging fees embedded in the CDR price, and their own views on future foreign exchange movements.
Dividends and Financial Performance
Berkshire Hathaway has a longstanding policy of not paying a cash dividend, a practice rooted in Warren Buffett's belief that the company can generate superior returns for shareholders by reinvesting all profits back into the business and its investment portfolio. Therefore, the total return for investors comes entirely from capital appreciation. The company's financial performance is driven by the earnings of its operating subsidiaries and the gains from its investment portfolio. In 2025, Berkshire Hathaway reported revenue of $371.44 billion, which was essentially flat compared to the previous year. Earnings for 2025 were $66.97 billion, representing a decrease of 24.75 percent from the prior year. The company's massive market capitalization, approximately $1.623 trillion, reflects its scale. Its beta of 0.60 indicates that the stock has historically been less volatile than the broader market, which contributes to its reputation as a relatively stable, long-term holding during periods of market stress.
How Canadians Can Hold Berkshire Hathaway Shares
Canadian investors can hold Berkshire Hathaway shares in various registered and non-registered accounts, depending on the specific security purchased. The US-listed Class B shares (BRK-B) can be held in a Canadian brokerage account, including within a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP). Holding US stocks in an RRSP is straightforward due to the tax treaty between Canada and the US. Holding them in a TFSA is also possible, though US dividend withholding tax would apply if dividends were paid. Since Berkshire does not pay dividends, this is not a current concern. The Canadian Depositary Receipts (BRK.TO, BRK.NE) are traded on the TSX in Canadian dollars, making them eligible for all Canadian registered accounts, including TFSAs, RRSPs, and Registered Education Savings Plans (RESPs), without any currency conversion or foreign withholding tax complications related to the underlying US security. The process to buy shares involves choosing a brokerage, funding the account, and searching for the appropriate ticker symbol. The general steps to purchase shares through a brokerage are consistent across platforms. Investors should be aware of their broker's specific fees for currency conversion, cross-border trading, and account administration.
- Choose a reputable online brokerage that offers access to the US markets and/or the Toronto Stock Exchange.
- Open and fund a trading account, which may be a cash account, TFSA, RRSP, or other registered plan.
- Search for the desired security using its ticker symbol: BRK-B for US shares, or BRK.TO/BRK.NE for CDRs.
- Place a buy order for the number of shares desired, using a market or limit order as preferred.
Principal Risks and Considerations
Investing in Berkshire Hathaway carries several specific risks that Canadians should evaluate. The most prominent risk is key person risk, which was heightened by the departure of Warren Buffett as CEO at the end of 2025. The future performance of the company is now dependent on a new generation of leadership and their ability to allocate capital as effectively. The company's immense size presents a challenge, as finding acquisitions large enough to move the needle on its massive asset base becomes increasingly difficult. While diversified, Berkshire Hathaway still has significant exposure to cyclical industries like insurance underwriting, railroad freight volumes, and residential construction, as seen with its large stake in Lennar. Economic downturns can negatively impact these businesses. The company's recent foray into growth-oriented technology investments, such as Bending Spoons, represents a strategic shift away from its traditional value-focused approach and may carry different risk profiles. For Canadians holding the US-listed shares, currency risk is a factor, as the investment's value in Canadian dollars will fluctuate with the USD/CAD exchange rate. The CDRs mitigate this but may include hedging costs that affect returns. Finally, the stock's premium valuation reflects high expectations, and any failure to meet them could lead to price declines.
Recent Strategic Moves and Investments
Even after Warren Buffett's transition, Berkshire Hathaway has remained active in deploying its capital. A major recent investment is in Bending Spoons, an Italian technology and digital media company. In October 2025, Berkshire agreed to invest an additional $330 million in Bending Spoons, following a $600 million commitment during the company's initial public offering in July of the same year. This brought Berkshire's total investment to $930 million for an approximate 4 percent stake in the company. In the housing sector, Berkshire has steadily increased its position in the homebuilder Lennar, raising its stake to 11.2 percent through purchases made in the latter part of the year. The company has also continued to expand its core insurance operations geographically, with Berkshire Hathaway Specialty Insurance announcing its entry into the Polish market and appointing Carsten Keune as Country Manager. These actions demonstrate that the conglomerate continues to seek growth through both financial investments in public companies and the expansion of its owned subsidiaries, maintaining a balance between its traditional sectors and new opportunities.
Frequently asked questions
Can I hold Berkshire Hathaway stock in my TFSA or RRSP?
Yes, you can hold Berkshire Hathaway in registered accounts. The US-listed BRK-B shares can be held in both TFSAs and RRSPs. The Canadian-listed CDRs (BRK.TO, BRK.NE) are also eligible for TFSAs, RRSPs, and other Canadian registered plans. The CDRs may be simpler as they trade in Canadian dollars without direct currency conversion.
What is the difference between BRK-B and the TSX-listed BRK.TO?
BRK-B is the US listed Class B share of Berkshire Hathaway, traded in US dollars. BRK.TO is a Canadian Depositary Receipt (CDR) listed on the Toronto Stock Exchange. The CDR represents a beneficial ownership interest in a pool of BRK-B shares. It is traded in Canadian dollars and includes a currency hedge designed to remove the impact of USD/CAD exchange rate fluctuations for Canadian investors. This provides a simpler way for Canadian investors to gain exposure to Berkshire Hathaway without directly converting currency.
Does Berkshire Hathaway pay a dividend?
No, Berkshire Hathaway does not pay a cash dividend. The company has a long standing policy of retaining all earnings to reinvest back into its businesses and investment portfolio. This strategy is a core principle of Warren Buffett's capital allocation philosophy. Shareholder returns are therefore generated solely through capital appreciation as the value of the company's diverse holdings grows over time. The company's earnings are used for acquisitions and internal investments to drive future value.
What are the main businesses owned by Berkshire Hathaway?
Berkshire Hathaway's main businesses are insurance, freight rail transportation, and utilities. Specifically, the company provides property, casualty, life, and health insurance and reinsurance. It operates railroad systems in North America through BNSF Railway. Its utility business generates and distributes electricity from diverse sources including natural gas, wind, solar, and nuclear. The company also owns a vast array of other businesses in manufacturing, retail, and services, such as building products, confectionery, apparel, and aviation training.
Who runs Berkshire Hathaway now that Warren Buffett has stepped down?
Warren Buffett announced at the May 2025 annual meeting that he planned to step down as CEO at the end of that year. The company is now led by a new generation of executives who continue its established operational and investment strategies. Recent activities, such as the significant investment in the technology company Bending Spoons, indicate the conglomerate continues to actively allocate capital under its existing framework. The transition marks a new chapter while aiming to preserve the company's core principles.
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.