Buffett Acknowledges Berkshire Hathaway’s Diminished Market Outperformance

Berkshire Hathaway's B shares have underperformed the S&P 500, with a modest 4.5% year-to-date gain compared to the index's 7% rise. The stock has closed in negative territory for six of the past seven weeks, threatening its longest losing streak since June 2022. A significant technical milestone was breached as the shares fell below their 200-day moving average for the first time in 573 trading sessions—the longest streak since the B shares' inception in 1996.

Warren Buffett's recent shareholder letter struck a subdued tone, stating Berkshire WOULD likely only slightly outperform the average American corporation while emphasizing lower risk of permanent capital loss. The conglomerate's massive cash pile makes meaningful portfolio impact increasingly difficult to achieve, signaling an end to its historical market-beating returns.