Berkshire Hathaway Lags S&P 500 by 12 Points at 2026 Midpoint
Berkshire's B shares are down 1.8% year-to-date, trailing the S&P 500's 10.7% gain by more than 12 percentage points.
Berkshire Hathaway's Class B shares have lost 1.8% since the start of 2026, leaving Warren Buffett's conglomerate significantly behind the broader market as the year crosses its midpoint. The S&P 500, by contrast, has posted a 10.7% gain over the same stretch, putting a gap of 12.4 percentage points between the index and one of Wall Street's most closely watched stocks.
The underperformance is notable given Berkshire's reputation as a defensive stalwart that tends to hold up well in volatile environments. While the company has recently gained some ground, the recovery has not been enough to close the widening distance from the index benchmark.
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Investors and analysts will be watching whether Berkshire can stage a meaningful catch-up trade in the second half of the year, or whether the gap reflects deeper headwinds facing the conglomerate's diversified mix of insurance, energy, railroad, and consumer businesses. Buffett's massive cash reserves, long a subject of scrutiny, could become a catalyst if the company deploys capital into acquisitions or buybacks.
The divergence also raises broader questions about the relative appeal of active stock-picking strategies versus passive index investing during a period when equity markets have broadly rebounded. A 12-point lag at midyear is a significant hurdle to overcome in just six months.
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