" Key Points

About This Summary

Berkshire Hathaway’s Class A and B shares both rose 2.8%, outperforming the S&P 500, which fell 0.9%.

Berkshire Hathaway holds over $350 billion in cash, contributing to its defensive appeal amid market declines.

The company’s stock is now slightly ahead for the year with a 0.8% gain, after trailing the S&P 500 by eight percentage points a week ago.

Maybe all that cash isn’t such a bad thing.

Berkshire Hathaway
BRK.B

-0.48%

is having its best day of relative performance versus the S&P 500 in nearly a year, demonstrating its value as a defensive megacap stock as the market slides. Other defensive groups, including health care and consumer staples, also were having a strong session.

Berkshire’s Class A shares were up 2.8% to $760,678 early Wednesday afternoon, while the Class B stock was also up 2.8% to $507.55. The S&P 500 index fell 0.9% as investors continued to worry about the software industry and the technology sector.

A week ago, Berkshire stock had been about eight percentage points behind the S&P 500 so far in 2026. Now, with a 0.8% gain this year, it is slightly ahead."

" Berkshire stock is seen as a haven because the company has cash holdings of more than $350 billion, a sizable chunk of its $1.1 trillion market value and far more than any other American company. Cash continued to mount up last year, partly Berkshire was a net seller of stocks for the first three quarters and partly because the company has a diversified earnings stream totaling about $45 billion after taxes annually.

It found only one notable acquisition in 2025, the nearly $10 billion purchase of Occidental Petroleum’s chemicals business, which closed in early January. Berkshire hasn’t bought back any stock since May 2024.

Chairman Warren Buffett’s cautious approach to investments has frustrated some investors because Berkshire has missed many opportunities in recent years. But Buffett and CEO Greg Abel, who took the top job in January, could find more to do if the current market decline deepens.
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barrons.com - Berkshire hathaway stock gains defensive