value investing

Berkshire Hathaway's B shares are trailing the S&P 500 by 16.3 percentage points year-to-date in 2026, the largest underperformance gap so far this year. This signals that even Warren Buffett's value-focused investment approach is struggling against the current market momentum, potentially indicating a shift in investor sentiment toward growth over traditional value strategies.

Software stocks previously down significantly have joined the market rally, with Microsoft having been down close to 20% in 2026. This rebound demonstrates classic value investing principles as investors buy technology stocks after major drawdowns.