No. of Recommendations: 11
Has people ever thought why Brk is outperforming SPY recently?
I find it is rarely worthwhile spending much time trying to figure out why a particular stock's price went up or down, or neither. Prices fluctuate.
But if you're looking for a reason behind Berkshire's big rally, recall that BRK tracked the S&P 500 pretty much perfectly in the three years to Feb 21. So there is no reason to search for factors before that date, it was just carried along with the tide. Any reason for a price pop, if any, would start then. And there is only a rise of 7-8% to this big mystery.
True, Berkshire didn't fall with the rest of the market in the April ructions. But then neither did it bounce along with the market.
If forced to guess, I would see that as most likely a flight to safety starting in Feb. Lately followed by lagging during a "risk on" moment because it's so boring.
The price has been pretty steadily lagging the average US large cap since the tariff shenanigans started. No particularly obvious explanation springs to mind, other than that the US dollar and economy have just been set on fire and Berkshire is the most US focused US large cap. Not a great explanation, but you can always find a narrative to fit.
Jim
