Berkshire Hathaway B shares lag S&P 500 as 2026 H1 closes

Berkshire Hathaway’s Class B shares are down 1.8% year‑to‑date, leaving them 12.4 percentage points behind the S&P 500’s 10.7% advance as the second half of 2026 begins [2].

Performance gap and recent catch‑up

Berkshire’s lag widened early in the year, swinging from a modest 1.8‑point lead in March to a 17.5‑point deficit by June 1. A strong June narrowed that gap by roughly one‑third, but the company still trails the benchmark by 12.4 points, a shortfall that dwarfs its 5.5‑point underperformance in 2025 (ex‑dividends) [2]. The S&P’s gain is driven by a tech‑heavy rally that posted a 16% rise in Q2, far outpacing Berkshire’s modest >3% increase for the same period [2].

Capital strength amid market weakness

Berkshire entered the quarter with a record $397.4 billion in cash and Treasury bills, up 6.5% from the end of 2025 [2]. The firm repurchased $234 million of its own shares in Q1 2026, signaling continued confidence in its valuation despite the broader market’s outperformance. Executives Greg Abel and Ted Weschler attended the Sun Valley billionaire gathering, underscoring the firm’s continued presence in elite finance circles even as Warren Buffett stays out of the event [1][2].

Buffett’s AI caution and its relevance

At the same conference, Buffett warned that generative AI could fuel sophisticated financial scams, likening the technology to an “out‑of‑the‑bottle” genie with both great promise and peril [2]. While the comment does not directly affect Berkshire’s balance sheet, it highlights the conglomerate’s exposure to emerging tech risks that could influence its future investment decisions.

What to watch

• Berkshire’s Q3 earnings (scheduled for early October) – any shift in earnings growth or cash deployment could narrow or widen the performance gap.
• S&P 500’s tech sector performance – a slowdown could reduce the benchmark’s lead, while continued strength may keep Berkshire trailing.
• AI‑related regulatory developments – new rules on deep‑fake disclosures could affect Berkshire’s exposure to AI‑driven assets.

Berkshire’s sizable cash pile gives it flexibility, yet the firm’s modest stock gains highlight the challenge of keeping pace with a tech‑driven market. Whether its capital allocation strategy can close the widening gap remains the key question heading into the second half of 2026.