Dual-Class Shares
What Are They?
By issuing two classes of stock, a company can have unequal voting rights. These dual-class shares have been around at least since the late 19th century.
- Class A shares usually give just one vote per share.
- Class B might give 10 or more.
Ford family, for example, controls 40% of the car company’s voting rights through roughly 2% of the equity in Class B shares. Warren Buffett’s conglomerate Berkshire Hathaway has a unique approach, with Class A shares granting full voting rights at a stratospheric price ($756,000 in July 2026). The company issued “Baby Berkshire” stocks in the 1990s at a much cheaper price point, but they come with just 1/10,000th of the voting power.
Why Should I Care?
With dual-class shares, the people with the most money invested aren't always the people calling the shots. This has become increasingly popular during the dominance of big tech, with companies like Alphabet, Meta, and SpaceX all opting for this structure.
Often investors even prefer it, if they think the company’s success depends on the founder’s vision and long-term bets. This allows people like Mark Zuckerberg and Elon Musk to retain control even if their companies are listed on a stock exchange.
What's the Catch?
Dual-class shares are easy to defend when the founder is making brilliant decisions. But if the company struggles, but control remains firmly in the hands of a failing founder, investors may start feeling frustrated.
They will find it difficult or impossible to:
- Replace management
- Block unpopular decisions
- Force a change in the company's direction