Context:

Berkshire Hathaway’s Class A and B shares lag the S&P 500 in 2026, narrowing a mid-year deficit only modestly after a stronger June, with Q2 gains still far short of the tech-driven market leader. The piece also notes Berkshire executives Greg Abel and Ted Weschler attending Sun Valley’s billionaire gathering, highlighting Buffett’s long-standing non-participation in recent years. It includes Buffett’s cautious take on AI: transformative yet potentially risky, illustrated by a convincing AI-generated video that could fuel scams. The outlook remains uncertain as Berkshire’s cash piles and share repurchases frame its strategic leverage amid a shifting market backdrop.

Dive Deeper:

• Berkshire Hathaway’s B shares are down 1.8% year-to-date, trailing the S&P 500 which has risen about 10.7% mid-year, with dividends widening the gap to roughly 13.1 percentage points.

• A strong June helped reduce Berkshire’s deficit from as large as 17.5 percentage points on June 1, though the year’s second quarter remained weak compared with the S&P’s roughly 16% advance driven by tech.

• In 2026’s first half, Berkshire’s performance swung from an early 1.8 percentage point lead to a more pronounced underperformance by quarter’s end, illustrating a reversal in momentum.

• CEO Warren Buffett has not attended Sun Valley in recent years, but Greg Abel and Ted Weschler appeared among attendees at the Allen & Co. conference, underscoring the gathering’s ongoing role in elite finance circles.

• Buffett warned about AI’s potential for both good and harm, recounting a recent AI-generated image and voice of himself that could enable sophisticated scams, and noting uncertainty over how to control the technology.

• Berkshire’s liquidity remained sizable, with cash around $397.4 billion as of March 31, 2026, and the firm repurchased $234 million of its own shares in Q1 2026, signaling ongoing buyback activity.

• Public holdings and portfolio context are summarized via Berkshire’s 13F (as of March 31, 2026), with CNBC tracking the full list and values; the narrative references the juxtaposition of Berkshire’s capital strength against a momentum-driven market.