Berkshire Hathaway Trails S&P 500 as Greg Abel Takes Leadership

Berkshire Hathaway’s stock has significantly underperformed the broader market in 2026, with both share classes posting month-to-date losses just under 1% while the S&P 500 closed above 7,100 for the first time, according to Cryptopolitan. The underperformance marks a sharp reversal from the previous day, when Berkshire B shares held a 1.8% lead over the index—the widest lead of the year—before closing 9.7% behind the index, the largest gap recorded so far in 2026.

Stock Performance Decline Since Leadership Transition

The underperformance has been building since May 2, 2025, when Berkshire Hathaway stock hit a record high just before Warren Buffett announced he would step down as CEO by year-end. Since that announcement, both A and B shares have declined more than 12%. Current prices sit only about 3% above their early August lows, demonstrating limited recovery compared to the broader market’s gains.

The S&P 500 has recovered more than 9% month-to-date after hitting its lowest level of the year in late March, when it was close to a 10% decline. This recovery represents one of the fastest seen in at least 36 years, according to the report.

Greg Abel’s Leadership Changes

Greg Abel assumed the CEO role following Buffett’s retirement and has implemented several operational changes. In December, just days before taking control, Abel addressed employees during a weekly lunch session and stated there would be no relocation of company headquarters from Omaha, Nebraska.

Abel has raised the profile of executives who worked closely with him previously, increased his own salary beyond what Buffett took, and stated most of that money will go toward purchasing company stock. He also restarted share buybacks after they were paused since 2024 and expanded into Japan by taking a stake in an insurance business.

Abel’s management approach differs from his predecessor. He is more involved in day-to-day operations and reviews company units and stock holdings with tighter oversight. According to the report, people close to the company say he plans to act quickly when expectations are not met, even at senior levels.

Abel described his leadership style in his own words: “Warren, Charlie and I, we have some differences, just in style and obviously in how we approach things. Our foundational values continue to be what we build our company through.”

His routine reflects a hands-on approach: he drives two hours from Des Moines to Omaha several times each week and does not plan to relocate soon, likely staying in Iowa until his son finishes high school. He also travels across multiple states in a single day using a NetJets corporate plane to meet managers directly.

Current Holdings and Portfolio Changes

In his February 28 shareholder letter, Abel listed core holdings including Apple, American Express, Coca-Cola, and Moody’s. At the same time, he exited positions handled by Todd Combs, who recently moved to JPMorgan Chase. Combs had been one of Buffett’s selected investment managers. Abel does not plan to replace him.

Upcoming Events

Berkshire Hathaway’s annual shareholder meeting is scheduled for two weeks from the article’s publication date, according to Cryptopolitan. Additionally, a new book titled “The Complete Financial History of Berkshire Hathaway, Second Edition” is set for release on April 28 through Harriman House under Pan Macmillan. The book will cover six decades of company activity and includes updates through 2024.

Background on Leadership Succession

The succession was not sudden. It had been expected since 2021 when Charlie Munger revealed the plan during the annual meeting. The exact timing remained unclear through Munger’s death in November 2023 until Buffett confirmed on stage in May that he would retire at year-end.