Berkshire outruns S&P 500 as AI rally fades

Berkshire's third-quarter results, reported on November 7, 2026, mark the first full year under Greg Abel's leadership after he succeeded Warren Buffett on January 1, 2026. Buffett later stepped down as chairman, and his son Howard was named to replace him, as reported in September 2026. The company's market value now stands at about $1.225 trillion, yet its business mix—railroads, insurance, energy, and consumer staples—meant it largely sat out the AI rally that has driven much of the broader market.

That caution is now paying off. While the S&P 500 fell 5.5% over the past month through the November 6 close, Berkshire shares gained 12.77%, and Fortune called the company a haven again as investors fled the AI rout. The operating results themselves were mixed: operating earnings fell 5.8% to $12.705 billion, with insurance underwriting earnings down 43%, but railroad, energy, and manufacturing earnings all grew. Management has long warned that quarterly net earnings can be "extremely misleading" because they swing with stock prices, which is why the cash pile and buyback pace may matter more to long-term holders.

The cash pile rose to $377.435 billion even as Abel spent on buybacks and acquisitions, including the July 2026 purchase of homebuilder Taylor Morrison. Berkshire's 13F filing as of June 30, 2026, showed $299.3 billion in stocks across 26 companies, with the seven largest positions making up 80.8% of that. Abel's own $15 million share purchase on March 4, 2026—about his after-tax salary—and his plan to repeat it annually may signal to investors that he sees value at current prices.