Is Berkshire Hathaway (BRK.B) Halal?
Screener: No — Berkshire Hathaway fails Shariah screening as of October 2026. Insurance and reinsurance — a prohibited industry under the business-activity gate — is one of its core businesses: its FY2025 10-K (year ended December 31, 2025) reports insurance operations alongside railroads, utilities, manufacturing, and retail, with an insurance float of about $176 billion. The ratios below are shown for transparency; the gate-one failure decides the result.
Gate 1: Business activity
Berkshire Hathaway describes itself in its 10-K as engaging in “diverse business activities including insurance and reinsurance.” Its reported segments include insurance (GEICO, Berkshire Hathaway Reinsurance Group, and General Re), the BNSF railroad, Berkshire Hathaway Energy (utilities), manufacturing, McLane (distribution), and retail. FY2025 revenue was $371.4 billion, and the insurance float — premiums held before claims are paid — was about $176 billion at year-end 2025.
The core problem for screening: insurance is conventional insurance — premiums collected and invested, claims paid from the pool — which is a prohibited industry under the business-activity gate. Berkshire’s financing arm (Berkshire Hathaway Finance Corporation) also funds loans originated by its Clayton Homes manufactured-housing business. Result: FAIL at gate one — a core prohibited business, regardless of any financial ratio.
Gate 2: Financial ratios
AAOIFI-style screening applies three ratio tests (thresholds shown; Dow Jones Islamic Market methodology uses 33% where AAOIFI uses 30% — the ceilings below use the stricter 30%):
| Ratio | Berkshire Hathaway (Oct 2026) | Ceiling | Result |
|---|---|---|---|
| Total interest-bearing debt ÷ market cap | 12.0% ($129.08B total debt on ~$1,074.2B market cap) | < 30% | PASS |
| Cash + U.S. Treasury Bills ÷ market cap | 34.4% ($369.0B cash and T-Bills on ~$1,074.2B market cap) | < 30% | FAIL |
| Non-compliant income ÷ total revenue | n/a (insurance premiums and investment income are core operating revenue — gate one decides) | < 5% | N/A |
Figures: FY2025 10-K (year ended December 31, 2025): revenue $371.4B; borrowings of $45.8B excluding BHE and BNSF, plus BNSF debt of $24.1B (total debt $129.08B); cash, cash equivalents and U.S. Treasury Bills of $369.0B; insurance float of about $176B. Ratios are shown for transparency only — the gate-one failure decides the screening result. Market cap from the September 30, 2026 close of $497.95 × 2,157,334,500 Class B-equivalent shares (1,438,223 Class A equivalents outstanding per the 10-K).
What this means if you hold it
The common guidance for a stock that fails screening: sell the holding (scholars differ on timing when it is at a loss — ask a qualified scholar), and purify the interest-derived share of any dividends or gains received rather than keeping them. Our purification calculator can help with the arithmetic; a qualified scholar can advise on the specifics of your situation.
What could change the screener
- A transformation of the business model. Berkshire would have to exit conventional insurance — not a realistic near-term scenario, but the gate-one test is about what the company does, so any structural change would trigger a fresh screen.
- Nothing else. No ratio improvement can overturn a gate-one failure under this methodology.
We re-screen on a quarterly cadence — the screener above reflects the latest published report and September 2026 market data.
Next steps
We don’t publish buying guidance for stocks that fail screening. If you’re building a Shariah-compliant portfolio instead, start from our full list of screened stocks, read the two-gate methodology, or ask a scholar about your specific situation.
FAQ
Is Berkshire Hathaway stock halal to invest in?
As of October 2026: no, it fails Shariah screening. Insurance and reinsurance — a prohibited industry at gate one — is one of Berkshire’s core businesses, with an insurance float of about $176 billion. This is a screening result, not a religious ruling.
But Berkshire owns railroads, utilities, and stocks — isn’t it a conglomerate?
It is a conglomerate, but that doesn’t help: insurance is one of its largest segments and the ~$176B float is central to the business model. Gate one tests what the company does, and a core conventional-insurance business is a prohibited industry.
I already own BRK.B — what do scholars commonly advise?
The common guidance: sell the holding (scholars differ on timing when it’s at a loss), and purify the interest-derived share of any dividends or gains rather than keeping them. For your specific situation, ask a qualified scholar.
What if Berkshire sold its insurance businesses?
Gate one tests what the company does. If Berkshire ever exited conventional insurance, it would get a fresh screen — but no ratio improvement alone can overturn a gate-one failure. We re-check quarterly.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).