Berkshire Hathaway Stock Lags S&P 500 Despite Major Acquisitions

Berkshire Hathaway shares have underperformed the S&P 500 by approximately 10 to 11 percentage points in 2026, with B shares rising about 2% against the index's 11% gain. This stagnation occurs despite a 17% increase in first-half operating earnings, which reached $24.3 billion, although currency fluctuations on non-U.S.-dollar debt contributed significantly to that growth.

Under the leadership of Greg Abel, who became CEO on January 1, 2026, the conglomerate has aggressively deployed its cash reserves. The company completed a $9.4 billion acquisition of OxyChem in January and a $6.8 billion purchase of homebuilder Taylor Morrison in July. Additionally, the firm repurchased $4.5 billion of its own shares during the second quarter.

Abel has pushed back against perceptions that the company's cash position indicates a lack of investment interest. While the stock has trailed the broader market this year, historical data since 1965 indicates that such lagging periods for the company are often followed by a recovery.