economy
Berkshire Hathaway’s longtime edge over S&P 500 shows signs of eroding
Technical analysts are increasingly pointing to signs that Berkshire's shares are losing momentum relative to the S&P 500.
TL;DR
- Technical analysts suggest Berkshire Hathaway's shares are losing momentum compared to the S&P 500.
- Berkshire's relative performance has returned to levels not seen since around 2007.
- The company's outperformance has waned, especially with the recent rise of AI-driven technology stocks.
- Berkshire holds a significant cash reserve of nearly $400 billion, viewed by some as a potential drag.
- Under CEO Greg Abel, share buybacks have resumed modestly after a hiatus.
- Warren Buffett previously cautioned that Berkshire's size makes dramatic outperformance difficult, expecting only 'slightly better' returns than average corporations with less risk.
- Berkshire's long-term record since the 1960s has been roughly double that of the S&P 500.