Berkshire Hathaway’s Class B shares gained about 7% over three weeks while semiconductor stocks lost roughly 15%, an October 21, 2026 analysis by market data editor Jared Blikre found. The comparison covered a short trading window rather than a full-year measure of performance.
The divergence coincided with Berkshire putting capital into technology businesses. Bending Spoons announced on October 14 that Berkshire had agreed to another $330 million investment, following a $600 million investment at its July initial public offering. The announcement said the additional transaction remained subject to customary closing conditions.
A short-term gap between Berkshire and chip stocks
Blikre’s analysis examined the period from October 2 through October 20. It put Berkshire’s advantage over the iShares Semiconductor ETF at 22 percentage points across 12 trading sessions.
The historical comparison used PHLX Semiconductor Index data going back to 1994. It found that the combination of semiconductor stocks falling at least 14% and Berkshire gaining at least 7% over 12 sessions had last occurred on October 3, 2001.
In the six earlier cases identified by the analysis, semiconductor stocks were lower a year later in five, while the S&P 500 declined in four. However, four of those six observations came during the same bear market, limiting their independence as historical examples.
Those results describe a small historical sample. They do not establish what semiconductor stocks, Berkshire or the wider market will do next. The comparison also concerns semiconductor shares specifically, rather than every part of the technology sector.
Bending Spoons investment adds software exposure
Bending Spoons described the October transaction as a private placement involving 10 million ordinary shares at $33 each. It said the investment would bring Berkshire’s ownership to 4%. Together with the July IPO investment, the announced funding amounts to $930 million.
The Italian technology company acquires and operates digital businesses. Its October announcement listed Evernote, Vimeo, WeTransfer, AOL and Airtable among its main businesses. The company says its approach involves acquiring businesses, changing their operations and reinvesting in further acquisitions.
Bending Spoons also says artificial intelligence is often part of both its plans for acquired businesses and the tools it uses to implement changes.
That context gives the investment a different role from Berkshire’s wholly owned insurance, railroad and energy operations: it is an equity stake in a company whose businesses include software applications and online services.
Morningstar analyst Greggory Warren viewed the Bending Spoons investment, alongside Berkshire’s Alphabet stake, as evidence that the conglomerate was broadening its search for places to invest. That was his interpretation of the transactions, rather than an announced Berkshire commitment to a particular level of future technology spending.
Warren said: “The firm is finally moving out of its comfort zone to find places to put capital to work.”
Operating earnings and insurance float
Berkshire describes its businesses as spanning insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing. Its results therefore combine operating businesses with income and gains from investments.
Its insurers collect premiums before paying claims, leaving funds available for investment in the meantime. Berkshire calls this pool insurance float and reported approximately $177.5 billion at June 30, 2026. Float is associated with insurance obligations; it is distinct from shareholders’ equity and should not be treated as an additional cash balance.
In its June-quarter filing, Berkshire reported $359.2 billion in cash, cash equivalents and U.S. Treasury bills held by its insurance and other businesses, net of payables for unsettled purchases. That is a June 30 balance and includes Treasury bills, rather than representing cash alone.
Berkshire’s second-quarter earnings release reported operating earnings of $12.98 billion, compared with $11.16 billion a year earlier. The company presents that measure separately from investment gains and losses, which include changes in the unrealized value of its equity holdings.
The distinction matters when reading the results: a change in the market value of Berkshire’s stock investments can affect net earnings without representing a corresponding change in the performance of its operating businesses.
Share repurchases and valuation
Berkshire’s filings show approximately $4.5 billion of share repurchases in the second quarter, compared with $235 million in the first. Those purchases were a separate use of capital from investments in other companies.
The repurchase policy permits buybacks when chief executive Greg Abel, after consulting the board chairman, believes the price is below a conservative estimate of intrinsic value. The filings also say repurchases must not reduce consolidated cash, cash equivalents and U.S. Treasury bill holdings below $30 billion.
The program does not commit Berkshire to a minimum purchase amount or set a maximum repurchase amount. Its terms therefore allow management to vary spending rather than requiring a fixed quarterly pace.
Warren’s October research maintained Morningstar’s fair-value estimates of $765,000 per Class A share and $510 per Class B share. He assessed the shares as fairly valued to slightly overvalued at that time. Those figures are analyst estimates, distinct from management’s assessment under the buyback policy.
Berkshire’s third-quarter results were expected on November 7. The report would update operating earnings, liquidity and capital deployment beyond the June 30 figures.
