Berkshire Hathaway Trails S&P 500 by 12 Points at 2026 Midpoint
Berkshire's B shares are down 1.8% year-to-date, lagging the S&P 500's 10.7% gain by more than 12 percentage points.
Berkshire Hathaway's Class B shares have turned negative through the first half of 2026, sliding 1.8% year-to-date even as the broader market surged, according to data tracked by US Top News and Analysis. The gap between Warren Buffett's conglomerate and the benchmark S&P 500 now stands at 12.4 percentage points — a rare and notable underperformance for a stock long celebrated as a proxy for steady, long-term wealth creation.
The S&P 500's 10.7% gain through the same period reflects a broader market rally that has left several high-profile value-oriented names struggling to keep pace. Berkshire, with its sprawling portfolio spanning insurance, energy, railroads, and consumer brands, tends to lag during momentum-driven bull runs where growth and tech stocks dominate index returns.
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The underperformance raises questions about whether Berkshire's famously large cash reserves — a strategic buffer Buffett has maintained amid what he has described as limited attractive opportunities — are acting as a drag on returns in an environment where fully invested portfolios have benefited most. Holding cash earns a fraction of what equities have delivered in the rally's upper stretches.
Analysts and long-term shareholders will be watching closely whether Berkshire deploys capital in the second half of the year, either through acquisitions or share buybacks, to close the performance gap. The company's next earnings report and any commentary from Buffett will be closely scrutinized for signals on capital allocation strategy as market conditions evolve.
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