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Berkshire Hathaway Trails S&P 500 by Widest 2026 Margin

Berkshire Hathaway's B shares underperformed the broader market in May, trailing the S&P 500 by 16.3 percentage points year-to-date—the largest gap recorded so far in 2026. The S&P 500 gained 5.1% in May and closed at a record high, while Berkshire shares remained essentially flat. The divergence widened after the S&P surged more than 35% in April and May while Berkshire fell nearly 11%. Technology stocks have fueled the index higher, a sector where Berkshire maintains minimal exposure. The conglomerate carries nearly $400 billion in cash and operates solidly profitable, though not spectacular, businesses. Great expectations for AI profits have driven tech-heavy investments, though some warn AI spending may become a bubble—a caution that echoes Buffett's avoidance of internet stocks in the late 1990s. New CEO Greg Abel tripled the company's Alphabet stake during the first quarter to nearly $22 billion, making it the fifth largest equity holding. Berkshire shares have declined 12% since their all-time closing high in May 2025, just before Buffett revealed plans to step down as CEO at year-end 2025. The company's relative performance against the S&P has reached its weakest level since 2007.