economy
Berkshire trails red-hot S&P 500 by biggest margin so far this year
Berkshire's widely held B shares are now running 16.3 percentage points behind the benchmark index year-to-date, the biggest gap so far in 2026.
TL;DR
- The S&P 500 closed at a record high in May, fueled by gains in tech stocks.
- Berkshire Hathaway's shares have significantly underperformed the S&P 500 year-to-date, with the gap widening in April and May.
- The tech stock rally is driven by expectations of AI profits and infrastructure spending.
- Berkshire maintains a conservative strategy with minimal AI exposure and substantial cash reserves.
- A proposed $85 billion merger between Union Pacific and Norfolk Southern is paused by the Surface Transportation Board for more information.
- Berkshire's BNSF railroad opposes the merger, citing anti-competitive concerns.