<div id="readability-page-1"><div><div>Since Warren Buffett's retirement announcement in May, Berkshire Hathaway Inc BRK BRK has trailed the S&amp;P 500 by roughly 26% — the steepest divergence in decades.Critics say he completely missed the AI-fueled rally, but veteran investors know this script: Buffett often underperforms at the top of the cycle — only to swoop in and capitalize when the bust begins.Track BRK slide since May, here.With cash piling and growth names dominating, is Berkshire quietly positioning for a market reset?Since May 2 — just before Buffett confirmed he would step down — Berkshire shares have slumped 14%, while the S&amp;P 500 roared ahead by around 11%. That 25‑plus point gap ranks among Berkshire's worst short-term lags since the early 1990s, excluding COVID-19 pandemic turbulence.Analysts note that declining investor confidence in Buffett's successor, Greg Abel, and reduced appetite for repurchases has eroded Berkshire's once‑valuable premium.Read Also: Is Apple Sinking Warren Buffett’s Portfolio? The Oracle Of Omaha’s Winning Streak Faces CollapseTrue to form, Berkshire avoided the AI frenzy — apart from Apple Inc AAPL, which was relatively late to the AI fest vis-a-vis its Magnificent 7 peers — and now holds over $340 billion in cash and T‑bills, roughly one‑third of total assets.That discipline has left the firm looking passive or tone‑deaf in a fast‑moving, tech‑driven rally. But historically, Buffett's reluctance to chase performance is fertile terrain for bottom‑feeding bargains.Value investors watch this story with fascination, not frustration. Over the years, Buffett underperformed the S&amp;P more than half the time across daily, weekly and quarterly windows — but often with long‑run outperformance that followed sustained selloffs.It’s a familiar pattern: when markets are euphoric, Buffett stacks cash. When they falter, he goes shopping.Berkshire's recent lag isn’t just a quirk — it might be the calm before the storm. When growth-heavy bubbles burst, Buffett historically turns bearish sentiment into buying power.Right now, it's not whether he's missed the AI rally — but whether the rally itself is ready to crack.<ul> <li>Jensen Huang Is Closing in on Warren Buffett’s Fortune — And The Numbers Might Surprise You</li> </ul>Photo: Shutterstock</div></div></div>

BRK.B

BRK.A

Warren Buffett's Berkshire Hathaway has underperformed the S&P 500 by 26% since his retirement announcement, missing the AI rally. Critics argue that Buffett's strategy of avoiding high-flying stocks may leave the company passive, but historically, he capitalizes on market downturns. With over $340 billion in cash, Buffett's approach suggests he may be preparing for a market reset. Analysts express concerns over confidence in his successor, Greg Abel, as Berkshire's recent lag could indicate a potential buying opportunity when the market corrects.

- Since Warren Buffett's retirement announcement in May, Berkshire Hathaway has underperformed the S&P 500 by approximately 26%, marking a significant divergence.  
- Analysts suggest that Buffett's strategy of accumulating cash during market highs positions the company for potential bargains when the market corrects.  
- Historically, Buffett has often lagged during euphoric market phases but capitalizes on downturns, indicating that the current underperformance may precede a market reset.

Buffett Misses The AI Boom — But Is He Just Warming Up For The Bust?