Berkshire Hathaway’s Class B shares have underperformed the S&P 500 by seven percentage points this year—the widest gap of 2025—amid sluggish insurance earnings and reductions in its Apple stake. Meanwhile, mega-cap technology stocks have led market returns, with Microsoft, Nvidia, and Meta posting double-digit gains. Analysts say the contrast highlights a rotation away from traditional value plays toward AI-driven growth sectors. Despite lagging performance, Berkshire maintains a robust cash position above $170 billion for future acquisitions and buybacks.