Berkshire Hathaway is falling far behind the returns of the S&P 500, a major U.S. stock market index, so far in 2026.

Cryptopolitan, a blockchain media outlet, reported on July 12 that Berkshire Class B shares are down 1.8 percent for the year, while the S&P 500 is up 10.7 percent.

The gap widens further when dividends are included. The S&P 500 total return is 11.4 percent, leaving Berkshire trailing by 12.4 percentage points on a share-price basis and 13.1 percentage points on a total-return basis. On June 1, the gap widened to 17.5 percentage points, marking Berkshire’s biggest underperformance this year. The difference narrowed somewhat after a June rebound, but the overall trend remained weak.

The divergence was more pronounced in the second quarter and the 10 days that followed. Berkshire rose a little over 3 percent, while the tech-heavy S&P 500 jumped about 16 percent. Berkshire was ahead of the index by 1.8 percentage points as of the end of March, but the trend later reversed.

A market structure led by large technology stocks is part of the backdrop. In 2025, Berkshire also underperformed the S&P 500 by 5.5 percentage points before dividends, and the gap widened to 7 percentage points including dividends. With relative returns lagging for a second straight year, the market is watching both the management system set to succeed Warren Buffett and Berkshire’s competitiveness.

In this situation, Chief Executive Greg Abel (그렉 아벨) and Chief Investment Officer Ted Weschler (테드 웨슬러) attended the Allen & Co conference in Sun Valley, Idaho. Major business leaders including Jeff Bezos, Mark Zuckerberg and Sam Altman were listed for the event. Investors are watching the succession process from Buffett to Abel, and how closely Berkshire can keep pace with the market during high-growth phases.

Still, Berkshire’s record remains strong over the long term. Since 1965, Berkshire shares have posted an average annual compounded return of 19.9 percent, outperforming the S&P 500’s long-term return by nearly double. Buffett built that record by buying strong companies when fear pushed share prices below their intrinsic value.

Buffett has long stressed patience over frequent trading. He once said, "The stock market is designed to transfer money from the active to the patient." He also said, "Be fearful when others are greedy, and greedy only when others are fearful."

During the 2008 financial crisis, Berkshire invested $5 billion in Goldman Sachs. Financial stocks were plunging at the time, but Berkshire secured preferred shares paying a 10 percent annual dividend and warrants to buy common stock later. It ultimately made more than $3 billion on the deal.

Even during steep market declines, Buffett first looked at whether the business itself was faltering. If demand for Coca-Cola drinks or American Express card use would not fall because the stock price dropped 30 percent, he judged it as a market pricing issue rather than a company problem.

Berkshire’s 1973 investment in the Washington Post followed the same logic. Berkshire invested $10.6 million during a heavy selling phase, and Buffett viewed the stock price then as about one quarter of the company’s actual value. Berkshire held the stake even as the price fell after buying, and by 1985 the stake was worth more than $200 million, delivering a gain of nearly 1,900 percent.

The market remains divided over whether Buffett-style patience is still effective. This year’s results show Berkshire failed to keep pace with the market as tech stocks led the rally, and scrutiny of succession and investment strategy is also growing.