As of 2026, Berkshire Hathaway is significantly underperforming the S&P 500, raising concerns about Warren Buffett's influence on Wall Street. The Class B shares of Berkshire have decreased by 1.8% this year, contrasting sharply with the S&P 500's increase of 10.7%. This disparity translates to a staggering 12.4 percentage points lag in price performance and 13.1 points when including dividends.
In early June, the situation appeared worse, with Berkshire trailing by 17.5 percentage points, marking its most substantial underperformance of the year. Although a recovery in June helped close some of the gap, Berkshire still only gained just over 3% during the second quarter, while the tech-heavy S&P 500 surged approximately 16% during the same timeframe. At the end of March, Berkshire had a slight lead of 1.8 points, but that advantage has since evaporated.
The current underperformance follows a challenging year in 2025, where Berkshire finished 5.5 percentage points below the S&P 500, and the gap widened to 7 points after accounting for dividends. These two consecutive years of weaker performance have drawn increased scrutiny on the company's leadership and its ability to compete in a market heavily influenced by technology giants.
Greg Abel, who leads Berkshire, alongside investment manager Ted Weschler, was notably absent from the Forbes feature at the annual Allen & Co. conference in Sun Valley, Idaho. Despite being listed as guests, their absence from the main spotlight suggests a shift in dynamics as investors begin to focus on the company's leadership transition following Buffett. This year’s conference featured prominent industry figures, including Jeff Bezos, Mark Zuckerberg, and Sam Altman, highlighting the high-profile nature of discussions and networking opportunities relevant to market leaders.
This article is for informational purposes only and does not constitute financial advice.
