Berkshire Hathaway Outperforms as Tech Stocks Sink

Investors seek safety in Berkshire's cash as tech sell-off continues.

Published on Feb. 7, 2026

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Berkshire Hathaway's stock outperformed the S&P 500 this week as investors fled the sell-off in technology stocks. The company's more than $350 billion in cash has become a blessing as concerns grow over AI spending outpacing revenues. Berkshire's A and B shares gained over 5% while the S&P fell 0.1% on the week.

Why it matters

Berkshire's outperformance highlights the appeal of its diversified portfolio and massive cash reserves in times of market volatility, especially compared to the struggles of high-flying tech stocks. This dynamic underscores Warren Buffett's long-term, value-focused investment approach.

The details

Berkshire's large stake in dialysis company DaVita also boosted performance, with DaVita shares soaring 29% after strong Q4 earnings. However, Berkshire was required to sell nearly 1.7 million DaVita shares last quarter to maintain its ownership stake below 45% per a prior agreement. Separately, Berkshire subsidiary Borsheims is planning a major renovation of its Omaha flagship jewelry store to 'reimagine the customer experience' and reinforce its status as a luxury destination.

  • Berkshire Hathaway's A and B shares gained over 5% this week.
  • The S&P 500 fell 0.1% on the week.
  • Berkshire was required to sell nearly 1.7 million DaVita shares last quarter.

The players

Berkshire Hathaway

A multinational conglomerate holding company headquartered in Omaha, Nebraska, led by legendary investor Warren Buffett.

DaVita

A dialysis company in which Berkshire Hathaway holds a 44% stake, currently valued at $4.2 billion.

Borsheims

A luxury jewelry store owned by Berkshire Hathaway that is planning a major renovation of its Omaha flagship location.

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What they’re saying

“The goal is to 'reimagine the customer's experience' with an 'elevated luxury environment' that 'reinforces Borsheims as a destination'.”

— Karen Goracke, President and CEO of Borsheims (Berkshire Hathaway news release)

What’s next

Renovations on the Borsheims flagship store in Omaha will begin after Berkshire's annual shareholder meeting in May. The store will remain open during construction.

The takeaway

Berkshire Hathaway's ability to outperform the market during the tech sell-off underscores the value of its diversified portfolio and massive cash reserves, reinforcing Warren Buffett's long-term, value-focused investment approach in contrast to the struggles of high-growth tech stocks.