Berkshire Hathaway Is on Pace to Do Something It Hasn’t Done Much Since 1965. Should Investors Be Worried Heading Into 2026?

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Berkshire Hathaway Is on Pace to Do Something It Hasn’t Done Much Since 1965. Should Investors Be Worried Heading Into 2026?


  • Berkshire Hathaway stock has underperformed the S&P 500 just 20 times since 1965.

  • Shares of the huge conglomerate are up over 5,500,000% since Buffett took over.

  • Incoming CEO Greg Abel will have a record cash pile at his disposal when he takes over.

  • 10 stocks we like better than Berkshire Hathaway ›

At the end of this year, Warren Buffett will finally retire from leading Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) after being at the helm since 1965. The investing world will surely look different without Buffett, but it has been a legendary run for Buffett and Berkshire Hathaway in that time.

Buffett and his managers have turned Berkshire Hathaway into a trillion-dollar company and made a lot of its investors a lot of money along the way. Unfortunately, this year hasn’t been one of Berkshire Hathaway’s best, up just over 9% through Dec. 19. Granted, that’s not a bad performance thus far. However, it’s underperforming the S&P 500, which is up around 16%.

A stock trading app with Berkshire Hathaway showing.
Image source: Getty Images.

From 1965 to 2024, Berkshire Hathaway has only underperformed the S&P 500 for a full year 20 times. Below are the years when it has happened.

Year

Berkshire Hathaway Returns

S&P 500 Returns

2023

15.8%

26.3%

2020

2.4%

18.4%

2019

11%

31.5%

2015

(12.5%)

1.4%

2011

(4.7%)

2.1%

2009

2.7%

26.5%

2005

0.8%

4.9%

2004

4.3%

10.9%

2003

15.8%

28.7%

1999

(19.9%)

21%

1996

6.2%

23%

1990

(23.1%)

(3.1%)

1987

4.6%

5.1%

1986

14.2%

18.6%

1984

(2.7%)

6.1%

1975

2.5%

37.2%

1974

(48.7%)

(26.4%)

1972

8.1%

18.9%

1970

(4.6%)

3.9%

1967

13.3%

30.9%

Source: Berkshire Hathaway 2024 annual report.

Berkshire Hathaway stock is built for sustainability, not necessarily for high growth. It tends to underperform when the market is in a mania phase, as may currently be the case with artificial intelligence (AI). Past examples include the rebound after the 2008 financial crisis, the peak of the dot-com bubble, and the 1975 post-recession bounceback.

Despite underperforming 20 times since 1965, there is one key stat that matters most: Berkshire Hathaway’s total gains from 1965 to 2024 were over 5,500,000% compared to the S&P 500’s 39,000%. That’s an annual average of 19.9% compared to 10.4%. And that’s including the S&P 500’s dividend payouts, which Berkshire Hathaway doesn’t pay.

The simple answer to this question is undoubtedly no. Despite 2026’s underperformance, the company is well built for the future.



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