Is Berkshire Hathaway Stock Halal?
Berkshire Hathaway Inc. · BRK-B · NYSE
Berkshire Hathaway Inc. (BRK-B) does not pass Shariah screening: its core business fails the activity screen (berkshire hathaway is a diversified holding company whose largest operating segment is insurance — geico (auto), berkshire hathaway reinsurance, and berkshire hathaway primary group — alongside the bnsf railroad, berkshire hathaway energy, and a broad set of manufacturing, retail, and service businesses), and cash + interest-bearing securities / market cap is 37.7% against the < 30% limit (data as of 2026-03-31), and impermissible income / total revenue is 6.3% against the < 5% limit (data as of 2026-03-31). It is not held by Shariah-screened ETFs SPUS or HLAL. Screened alternatives exist in the same sector — see the halal stock screeners and ETF guides below.
Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-14
Our Analysis
Berkshire Hathaway is one of the most common 'is it halal?' questions because it is such a famous, well-run company — but on standard Shariah screens it does not pass, and the reason is structural rather than incidental. Berkshire's single largest business is conventional insurance: GEICO on the auto side and Berkshire Hathaway Reinsurance on the wholesale side. Conventional insurance is treated as impermissible by mainstream AAOIFI-aligned scholars because of the gharar (excessive uncertainty) and riba embedded in how premiums and reserves are structured and invested. Because insurance is a core segment, not a rounding error, the business-activity screen fails outright.
The financial ratios fail as well. Berkshire famously holds an enormous pile of cash and U.S. Treasury bills plus a large marketable-securities portfolio — on our screen, cash plus interest-bearing securities is about 38% of market capitalization, over the 30% AAOIFI threshold. Impermissible income (chiefly interest and insurance income) runs around 6% of revenue, over the 5% limit. Either ratio alone would flag the stock; combined with the business-activity failure, the verdict is unambiguous.
This is why both Zoya and Musaffa classify Berkshire as not Shariah-compliant, and why it does not appear in Shariah-screened funds like SPUS or HLAL, which exclude the financials and insurance sector by design. There is a notable irony — Berkshire's own largest single holding has at times been Apple, a stock many screens consider compliant — but you cannot get clean exposure to Berkshire's permissible pieces by buying the consolidated holding company. Muslim investors who want a diversified, buy-and-hold core position should look instead at Shariah-screened ETFs (such as SPUS or HLAL), which deliver broad market exposure with the insurance and conventional-finance names already removed.
Business Activity Screen
Berkshire Hathaway is a diversified holding company whose largest operating segment is insurance — GEICO (auto), Berkshire Hathaway Reinsurance, and Berkshire Hathaway Primary Group — alongside the BNSF railroad, Berkshire Hathaway Energy, and a broad set of manufacturing, retail, and service businesses. It also holds a very large portfolio of marketable equity securities and cash/Treasury bills. Insurance underwriting and the investment of insurance float are central to the business model.
Berkshire fails the Shariah business-activity screen because conventional insurance (GEICO and reinsurance) is a core, not incidental, line of business — conventional insurance involves gharar and riba and is treated as impermissible by mainstream AAOIFI-aligned screens. On the financial side it also breaches two AAOIFI ratio limits: cash plus interest-bearing securities is roughly 38% of market cap (versus the 30% limit), reflecting its very large Treasury-bill and investment holdings, and impermissible income (largely interest and insurance income) is around 6% of revenue (versus the 5% limit). The presence of permissible operating businesses such as BNSF and See's Candies does not cure the consolidated business-activity and ratio failures.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 13.8% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 37.7% | < 30% | Fail |
| Impermissible income / total revenueInterest income only — verify other impermissible revenue lines in the 10-K | 6.3% | < 5% | Fail |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
SP Funds S&P 500 Sharia ETF (SPUS)
Not held in SPUS as of 2026-06-13. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →Wahed FTSE USA Shariah ETF (HLAL)
Not held in HLAL as of 2026-06-13. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →Zoya
Classifies Berkshire Hathaway (both BRK.B and BRK.A) as NOT Shariah-compliant under its AAOIFI-based methodology; dividends from a non-compliant stock are treated as impermissible income to be purified.
Source →Musaffa
Classified NOT HALAL as of November 2025 (report source: 2025 Q3) based on AAOIFI business-activity and financial-ratio screens.
Source →
What to do instead
You don't have to choose between investing and your values — screened alternatives exist for nearly every position.
Related guides
Consider Consulting an Islamic Scholar
Major whether Berkshire Hathaway Inc. is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
Important: HalalWallet is an educational comparison platform. We do not provide financial, legal, or religious advice.
Product structures and Shariah-compliance oversight vary by provider. Before applying:
- Verify halal compliance directly with the provider.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Consult a qualified Islamic finance advisor or scholar for guidance on your individual circumstances.
Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
- BRK-B latest quarterly filing (balance sheet 2026-03-31)
- AAOIFI Shariah Standards
- Berkshire Hathaway Inc. 10-K filings (SEC EDGAR)
- Zoya — BRK.B Shariah compliance status (not compliant)
- Musaffa — BRK.B Shariah status (NOT HALAL, Nov 2025)
- SP Funds SPUS — S&P 500 Sharia Industry Exclusions methodology (excludes financials/insurance)
- HalalWallet Methodology
- Editorial Policy
How to cite this page
Preferred format:
For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
Editorial Team, HalalWallet
Independent halal finance research
Reviewed quarterly and updated for major content changes.