Berkshire Hathaway Lags S&P 500 by 12 Points Midway Through 2026
Berkshire's B shares are down 1.8% in 2026, trailing the S&P 500's 10.7% gain by more than 12 percentage points at the year's midpoint.
Berkshire Hathaway's Class B shares have lost 1.8% year-to-date as 2026 crosses its midpoint, leaving Warren Buffett's conglomerate a substantial 12.4 percentage points behind the S&P 500, which has climbed 10.7% over the same stretch.
The gap is a notable reversal for a company that has long been benchmarked against the broader index. While Berkshire has shown some recent momentum — reflected in the "gains ground" framing — that progress has not been enough to close the double-digit deficit that has opened up against the market benchmark this year.
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The underperformance raises questions familiar to long-term Berkshire watchers: whether the conglomerate's sprawling mix of insurance, energy, rail, and consumer businesses can keep pace with an index increasingly driven by technology and growth stocks. Berkshire's defensive posture and massive cash reserves, while reassuring in downturns, can weigh on relative returns during broad equity rallies.
With roughly half a year remaining in 2026, investors will be watching whether Berkshire can narrow the gap or whether the S&P 500's double-digit advance proves too large to overcome before year-end. Any shift in market sentiment away from growth and toward value could quickly alter the picture for Buffett's flagship holding company.
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