Defensive Bellwether Slumps for Eight Consecutive Days
Berkshire Hathaway's stock (NYSE: BRK.A, BRK.B) concluded trading on March 28, 2026, marking an eight-day consecutive losing streak. The sustained decline is notable for a conglomerate widely considered one of the most defensive mega-cap stocks in the market. Such a performance slide in a stable market anchor raises questions about underlying weakness in the sectors represented in its portfolio or a shift in broader investor sentiment.
Stock Lags S&P 500 With 240% Ten-Year Return
The recent slump adds to a longer-term trend of relative underperformance. Over the last decade, Berkshire Hathaway's share price has risen 240%, a notable gain that would have turned a $10,000 investment into $34,000. However, this growth trails the S&P 500 index's total return of 282% over the same period. The stock's appreciation was primarily fueled by fundamental profit growth, as its earnings per share (EPS) increased by 218% between 2015 and 2025. Valuation expansion was not a significant factor, with its price-to-earnings (P/E) ratio moving only slightly from 14.4 to 15.4 over the decade.
Cash Drag and Tech Aversion Challenge New CEO
Berkshire's strategy of avoiding large stakes in technology companies and maintaining hundreds of billions of dollars in cash has acted as a headwind against its returns, particularly in a market often led by tech giants. These strategic decisions, hallmarks of Warren Buffett's tenure, now present a significant challenge for new CEO Greg Abel. As he takes over capital allocation, investors are closely watching whether the firm will adapt its legendary investment philosophy to compete more effectively with broader market benchmarks.
