Berkshire Hathaway Stock Is Off to Its Worst Start Since 2020. Is This a Huge Buying Opportunity?
Key Points
Berkshire Hathaway's stock hasn't been struggling this badly to start a year since the pandemic.
Investors may be wary of investing in the company under a new CEO, even though its core principles remain the same.
- 10 stocks we like better than Berkshire Hathaway ›
Shares of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) are down around 6% thus far in 2026, which is an unusually poor start. The stock has normally been much more stable than this. The last time it was off to a worse start in the first three months of the year was in 2020, in the early stages of the COVID pandemic, when it was down by more than 19%.
Not only are concerns about the broader economy impacting the stock this year, but Warren Buffett is no longer CEO of the iconic company. Since the start of 2026, Greg Abel has been running the business. And while he follows the same investing principles and strategy as Buffett did, investors may nonetheless not feel as excited about the stock with a different CEO at the helm; Abel may still need to prove himself.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Could now be a golden opportunity to buy shares of Berkshire Hathaway?
Image source: Getty Images.
Berkshire faces a big challenge in 2026
The problem with Berkshire's stock today is that it still faces the nagging question of how different the business will be under Abel. While the principles and strategy may be the same, there may still be slight changes in how the company is managed, and its top holdings may also change. This year will be a critical one for the company to prove to investors that it's still on the same trajectory.
Buffett, however, is unconcerned and said in a recent interview that, "I'd rather have Greg handling my money than any of the top investment advisors or any of the top CEOs in the United States." Abel has big shoes to fill, and while he is a capable successor, investors may still be eagerly awaiting upcoming quarterly filings this year to confirm that the business is indeed on the same strong trajectory as it was under Buffett.
Currently, Berkshire still has a market cap of just over $1 trillion and remains one of the most valuable companies in the world. However, with its decline in value to start the year, it is down about 12% from its 52-week high of $542.07. It's trading at a price-to-earnings multiple of around 15, which may feel a bit high for the financial stock, but it's still lower than the S&P 500 average of 24.
The stock still looks like a great long-term buy
Berkshire Hathaway stock is down this year, but it remains a good and stable investment to hang on to for the long term. While it doesn't pay a dividend, it has generated solid returns for investors nonetheless. In five years, the stock has risen by 84%, beating the S&P 500, which is up around 60% over that stretch.
The stock's slow start this year could make it an attractive option to buy on the dip. With quality management and a continued focus on investing in stable and safe businesses, it can be an excellent pillar to build your portfolio around.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $501,381!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,012,581!*
Now, it’s worth noting Stock Advisor’s total average return is 880% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 31, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
Recommended Articles
