Berkshire Hathaway's B shares have experienced a challenging first half of 2026, declining 1.8% year-to-date and trailing the S&P 500's 10.7% gain by 12.4 percentage points. When including dividends, the S&P 500's total return rises to 11.4%, widening the performance gap to 13.1 percentage points in favor of the benchmark index [1].
A strong performance in June helped Berkshire erase nearly a third of its 17.5 percentage point deficit as of June 1, which was the company's largest underperformance margin of the year. Despite this improvement, Berkshire's gain of just over 3% in the second quarter (plus 10 days) was overshadowed by the S&P 500's robust 16% advance, driven largely by technology stocks. This erased what had been a 1.8 percentage point lead for Berkshire at the end of March [1].
Looking back, Berkshire also underperformed the S&P 500 in the previous year by 5.5 percentage points excluding dividends, and by 7.0 percentage points when dividends are included [1].
On the corporate front, Berkshire Hathaway CEO Greg Abel and portfolio manager Ted Weschler were seen attending the exclusive Allen & Co. conference in Sun Valley, Idaho, alongside notable figures such as Jeff Bezos, Mark Zuckerberg, and Sam Altman. Warren Buffett, who attended the conference for decades, has not participated in recent years [1].
During the 2024 Berkshire Hathaway Annual Meeting, Warren Buffett commented on the risks of generative AI, expressing concerns about its potential to facilitate financial scams. Buffett recounted a personal experience with AI-generated deepfakes and warned about the technology's capacity to deceive, likening its risks to those posed by nuclear weapons [1].
CONCLUSION
Berkshire Hathaway continues to underperform the S&P 500 in 2026, despite a notable recovery in June. The company's leadership remains engaged in high-profile industry events, while Warren Buffett voices caution about emerging technologies like AI. Investors may remain cautious given the ongoing performance gap and broader market trends.