Is Berkshire Hathaway Stock Halal?
Berkshire Hathaway Inc. · BRK-B · NYSE
All 3 halal screening authorities with a published position rate Berkshire Hathaway Inc. not halal.
Berkshire Hathaway Inc. (BRK-B) does not pass Shariah screening: its core business fails the activity screen (Berkshire fails the Shariah business-activity screen because conventional insurance (GEICO and reinsurance) is a core, n), 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
HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.
Do the halal screening authorities agree?
- HalalWallet (AAOIFI)· Not halal
- Musaffa· Not halal
- Zoya· Not halal
All 3 halal screening authorities with a published position rate Berkshire Hathaway Inc. not halal.
Stances are normalized from each authority's own dated public position. Disagreement usually reflects a methodology or standard difference (ratio timing, market-cap vs total-assets denominator), not an error. For the fund screens (Wahed/HLAL, SP Funds/SPUS), only a confirmed holding that passed the fund's screen counts as a pass — a non-holding is left blank because absence can reflect index scope.
Is Berkshire Hathaway Stock Halal?
All 3 halal screening authorities with a published position rate Berkshire Hathaway Inc. not halal. Berkshire Hathaway Inc. (BRK-B) does not pass Shariah screening: its core business fails the activity screen (Berkshire fails the Shariah business-activity screen because conventional insurance (GEICO and reinsurance) is a core, n), 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.
- Interest-bearing debt / market cap: 13.8% (< 30%) — Pass
- Cash + interest-bearing securities / market cap: 37.7% (< 30%) — Fail
- Impermissible income / total revenue: 6.3% (< 5%) — Fail
- Financial ratios sourced from filings as of 2026-03-31.
How we read the evidence
HalalWallet's editorial synthesis of the screens, scholar positions, and sources documented on this page — not a religious ruling.
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
Stay Updated
Get alerted when screening statuses change — new financials, new authority positions, new verdicts
No spam ever. Unsubscribe in one click.
The Final Step: Your Scholar Conversation
Major whether Berkshire Hathaway Inc. is halal decisions involve nuances that vary by scholarly opinion and personal circumstance — which is why HalalWallet is built as the research step, not the ruling. We do the homework on comparisons, structures, and oversight; a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor covers what no comparison site can — guidance specific to your situation. Bring your shortlist to that conversation so it starts at the decision, not the basics.
How to use this comparison: HalalWallet is an independent educational comparison platform — by design, we do not provide financial, legal, or religious advice. We do the research homework so your final checks are quick and personal.
Product structures and Shariah oversight vary by provider, so finish with three built-in steps:
- Confirm current terms and halal compliance directly with the provider — their quote is final.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Bring your shortlist to a qualified Islamic finance advisor or scholar, so the conversation is about your situation, not the basics.
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: 2026-07-01
- 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)
- Berkshire Hathaway Inc. SEC EDGAR filings
- Musaffa — BRK-B
- SPUS Schedule of Investments reference (2026-02-28)
- HLAL holdings reference (2026-06-05)
- HalalWallet Methodology
- Editorial Policy
- Markdown mirror (AI systems, CC BY 4.0)
- Halal verdict corpus (JSON)
How to cite this page
Preferred format (HTML):
AI / agent mirror (Markdown, CC BY 4.0):
Bulk feed record: verdict.berkshire-hathaway-stock in /api/llm-feed.json
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.