Which stock index added Berkshire Hathaway after its 2010 Class B share split? The answer is the S&P 500.
In January 2010, Berkshire Hathaway completed a 50-for-1 split of its Class B shares as part of its acquisition of BNSF Railway. The split reduced the price of each Class B share, making the stock more accessible and substantially increasing its trading liquidity.
That change helped Berkshire meet the S&P 500’s eligibility requirements, and the company joined the widely followed large-cap index in February 2010. The inclusion also prompted buying by index funds and other investors whose portfolios track the benchmark.
A common mix-up is the Dow Jones Industrial Average, where Berkshire has never been a component. The Russell 2000 represents smaller companies, while the Nasdaq-100 focuses on major nonfinancial companies listed on Nasdaq. Berkshire’s inclusion reflected its size and improved share liquidity, not a change in its business model.