Berkshire Underperforms as S&P 500 Hits Record High

• Berkshire's Class B shares went from leading the S&P 500 by 1.8 percentage points on March 30 to trailing by 9.7 percentage points by April 18, the widest gap in 2026
• Both Berkshire share classes are down more than 12% since Warren Buffett's CEO succession announcement, though about 3% above their early-August 2025 lows
• The S&P 500 rally was driven by reduced fears about global conflict, earnings, artificial intelligence, and inflation following the index's late-March low near a 10% correction

Market Summary: Berkshire Underperforms S&P 500

Key Performance Data

Berkshire Hathaway significantly underperformed the broader market in April 2026, trailing the S&P 500 by 9.7 percentage points as of Friday's close—its largest gap year-to-date. The S&P 500 reached a record high, benefiting from easing concerns over U.S.-Iran conflict, earnings, artificial intelligence, and inflation following a near-10% correction in late March.

Company Performance

Both Berkshire share classes remain relatively flat for the month while the overall market soared. Class A shares trade at approximately $711,559, while Class B shares closed at $474.58 (P/E ratio: 15.29). The company's market capitalization stands at $1.02 trillion.

Since Warren Buffett's CEO succession announcement, both share classes have declined over 12%, though they remain about 3% above early-August 2025 lows. As of March 31, Berkshire had been running 1.8 percentage points ahead of the S&P—representing a dramatic reversal in relative performance within just weeks.

Financial Position

Berkshire maintains substantial liquidity with $373.3 billion in cash as of December 31, 2025 (down 2.2% from September). Excluding rail cash and T-bills payable, cash stands at $369.0 billion (up 4.1%). The company resumed stock repurchases on March 4, 2026, though no additional buyback activity has been disclosed.

Market Implications

The underperformance highlights Berkshire's defensive positioning amid market optimism. The company's massive cash reserves suggest continued caution, potentially signaling limited attractive investment opportunities at current valuations despite the broader market rally.