The past three months have been brutal for the stock market. Even with the 35% gain the S&P 500 had made since its March 23 low, the broad large-cap index remains 13% below its Feb. 19 peak. And doubts about the rally's longevity continue to swirl.
Things have been even worse for owners of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), believe it or not. Though there's no denying Berkshire CEO Warren Buffett has earned his title as the Oracle of Omaha, his approach to stock-picking was particularly vulnerable to the highly unusual conditions that have prevailed since late February when the market began to recognize the potential economic damage the COVID-19 pandemic could cause in the United States. Namely, Berkshire's lack of sector diversification among its biggest stock holdings has severely hurt shareholders, driving the fund to a year-to-date loss of 24%. The fund just hasn't benefited as much from the partial recovery many other stocks began to make in March, as its largest equity positions are within the sectors that have been the hardest hit since March.
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