Berkshire Hathaway outperforms S&P 500 in 2025

Stocks have had a rough start this year. The S&P 500 index is down nearly 4% and has dropped over 8% since mid-February. Concerns about the economy and trade issues are making investors nervous. In contrast, Warren Buffett's Berkshire Hathaway has risen by more than 16% in 2025, reaching new record highs. Berkshire Hathaway is a large conglomerate that owns businesses in many sectors, including energy and insurance. It also has a diverse investment portfolio worth about $281 billion. This includes major companies like Apple and Bank of America. Investors see Berkshire as a safe choice during uncertain times. The company has outperformed the broader market in three of the past four years. One of Berkshire's standout areas is its GEICO insurance business. In 2024, it reported significant growth in both underwriting and investment income compared to the previous year. Buffett recently praised his team for their hard work and success in transforming the company's core business over the last five years. Berkshire Hathaway's unique combination of large businesses, strong cash reserves, and solid leadership gives it a competitive edge that is hard to match. While the S&P 500 has become focused on a few successful tech companies, Berkshire remains diversified. This makes it a solid option for investors looking for stability, regardless of market conditions. Investors can expect Berkshire to continue its prudent approach to capital management, making it a reliable choice in both good and bad times.