Berkshire Outperforms S&P Amid Tech Sell-Off

Berkshire Hathaway shares have outperformed the S&P 500 this week, rising over 5% as investors shifted funds from slumping tech stocks to traditional conglomerates with limited AI exposure. The move highlights a growing caution around the AI sector, with data center spending concerns weighing on tech stocks. One month ago, Berkshire's B shares lagged the S&P by 13.6 percentage points, but recent gains have narrowed the gap to 5.8 percentage points. The company's increased share repurchases and stable earnings have bolstered investor confidence, contrasting sharply with the S&P's 2.7% weekly decline. The Nasdaq Composite also fell 3.4% this week, with tech stocks hitting a 10% correction from recent highs. Despite its broader diversification, Berkshire is not entirely insulated from AI-related volatility. Its significant stake in Alphabet, acquired through both direct purchases and open-market buys, has seen a 20% drop since June, reducing its value to $30.2 billion. Analysts note that while some question the timing of Berkshire's AI bets, long-term value investors see the strategy as consistent with the company's conservative approach.