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Ahead of Berkshire Hathaway's (NYSE:BRK.B) annual meeting, it's worth checking how Warren Buffett (Trades, Portfolio)'s portfolio has fared.
From late December through April 24, the aggregate holdings dipped roughly 7%, while the S&P 500 clawed its way back to flat over the same span, according to GuruFocus data. That short-term lag reverses a decade-long trend of Berkshire outperforming the broader market, but it also sets the stage for savvy capital redeployment as shareholders head to Omaha.
In the first chart, Buffett's blue line tumbles as much as 17% in early Aprildriven largely by softness in financials like Bank of America (NYSE:BAC) and energy names such as Occidental Petroleum (NYSE:OXY)before bouncing back to about 7% by late April. Meanwhile, the S&P 500 (yellow) never fell as sharply and recovered to near 0% by month-end, reflecting a broader rally in mega-caps and tech. This divergence highlights the cost of concentration: large stakes in high-beta stocks amplified Berkshire's swings in a choppy market.
Zooming out to the second chart, Berkshire's long-term edge becomes crystal clear. Over the past decade (20142023), Buffett's aggregated stake jumped roughly 205%, versus a 158% gain for the S&Pa 47-point excess return. Even in the most recent three-year window (20212023), Berkshire delivered a cumulative 56% gain against 27% for the index. That said, recent years haven't been all smooth sailing: Berkshire underperformed the S&P in 2023 (15.8% vs. 24.2%) and lagged by about 12 points over the five years ending 2023.
These mixed outcomes underscore Buffett's enduring playbook: patience, concentration and the ability to redeploy insurance float into undervalued opportunities. With Fed tightening and earnings season heating up, investors at this year's meeting will be keen to hear how Buffett plans to lean into buybacks, reshape positions or double down on his highest-conviction ideasbecause if history holds, the bumps of today could pave the way for tomorrow's gains.
This article first appeared on GuruFocus.