Michael Burry criticizes Berkshire Hathaway’s stock performance versus the S&P 500

Berkshire Hathaway’s stock has lagged the S&P 500 so far in 2026, according to figures cited in a recent market report that also included a fresh critique from hedge-fund investor Michael Burry. The report says Berkshire shares are up about 3% in 2026, while the S&P 500 has risen more than 13% over the same period, a widening performance gap that has become part of the debate over whether Berkshire still screens as an ideal long-term value holding.

The same market commentary framed Burry’s view as a shift away from what it described as an earlier “attractive” tag for the Berkshire position. While the report centers on relative performance, the key question it raises is whether the expected return from Berkshire, given its well-known buy-and-hold approach, still justifies the valuation and opportunity cost versus an index that has delivered stronger gains.

Berkshire Hathaway is a conglomerate built around a distinctive investment model. Rather than running a single-line business, the company allocates capital across a portfolio of operating businesses and investments, a structure that can make its results feel smoother than the market in some periods, and slower to re-rate in others. Investors have often weighed Berkshire’s ability to preserve capital during downturns against the possibility that the company can underperform during market rallies if its core holdings and decision-making cycle do not align with prevailing trends.

Burry is known for concentrated, event-driven, and sometimes contrarian investing. In recent years, he has repeatedly emphasized valuation and downside risk in public-market bets, which can lead to a different reaction when a historically defensive or value-leaning stock begins to fall out of favor on relative terms. In the report, his comments were tied specifically to the idea that Berkshire can no longer be characterized the same way as it once was, even as the company continues to be widely followed for its long-term capital discipline.

The report does not provide additional detail in the way of new filings, segment-level performance numbers, or a breakdown of what changed in Berkshire’s underlying portfolio. It also does not specify any particular catalysts, such as a particular sale, acquisition, or change in strategy, that would explain the divergence versus the S&P 500 during 2026. As a result, the commentary appears focused more on market performance and investor interpretation than on new, company-specific disclosures.

For the broader market, the exchange underscores a recurring theme: even widely respected, historically patient investors can become targets of debate when their holdings trail benchmark returns for a sustained stretch. The S&P 500’s outperformance in 2026, as cited in the report, adds pressure on investors who compare Berkshire’s long-run narrative to what they can get from a broad index without taking company-specific concentration risk.

Looking ahead, investors will likely watch whether Berkshire can narrow the gap to the S&P 500 through renewed stock-market momentum, changes in how the market values its operating subsidiaries and investments, or simply through broader risk appetite. The immediate takeaway from the report is not a new action by Berkshire, but a reminder that the “attractiveness” of any long-held position can shift as relative performance and expectations move.

For now, the key limitation is that the available discussion is framed through market commentary rather than a detailed company update. Without additional disclosure in the post itself, it remains unclear which holdings or valuation assumptions Burry had in mind when arguing that the stock no longer carries the same appeal, beyond the headline comparison of returns. That uncertainty leaves room for other interpretations of the lag, including market timing and differences between index exposure and Berkshire’s portfolio composition.