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Berkshire Hathaway’s Stellar Performance Amid Market Volatility

In a challenging year for many prominent stocks, Warren Buffett’s Berkshire Hathaway continues to shine, boasting a 17% return so far, while the S&P 500 index has experienced a decline of 6%.

This impressive performance places Berkshire in the upper echelon, ranking among the top 10% of large-cap companies in the U.S. market. As the annual Berkshire Hathaway shareholder meeting approaches in Omaha, Nebraska, this recent success is drawing increased attention. Coinciding with this momentum is the newly introduced VistaShares Target 15 Berkshire Select Income ETF (OMAH), which encompasses the top 20 most significant stocks in Berkshire’s portfolio, alongside shares of Berkshire Hathaway itself.

Currently, Berkshire Hathaway represents the largest holding within the ETF, accounting for 10.6% of the fund. Other notable investments featured in the ETF come from Berkshire’s portfolio, including major companies such as Apple, American Express, Kroger, VeriSign, Bank of America, Citigroup, Visa, and, notably, Coca-Cola, which has long been a favorite of the so-called Oracle of Omaha.

“It’s a really well-balanced portfolio selected by the most successful investor the world has ever seen,” Adam Patti, CEO of VistaShares, remarked during his recent appearance on CNBC’s “ETF Edge.”

Berkshire’s outperformance of the S&P 500 is not just a fleeting trend in 2025. Over the last year, its stock has tripled the market’s performance, achieving a remarkable 185% return in the past five years—more than double the S&P 500’s results.

Berkshire Hathaway stands out as one of 2025’s top-performing stocks. In addition to maintaining this long-term trajectory of success, the company is also gaining attention for the significant cash reserves Buffett has amassed while reducing stakes in major stocks, including Apple. This strategy appears to be effective, with the S&P 500 experiencing substantial short-term fluctuations since President Donald Trump took office on January 20. Despite a recent recovery, the index remains down 8% since the beginning of Trump’s second term.

“The market has shifted away from momentum-driven investments, and there is now a greater focus on quality. Berkshire Hathaway has excelled during this year, significantly surpassing the S&P 500,” Patti noted.

Berkshire Hathaway is well-known for not issuing dividends, a practice Buffett has upheld for decades based on his belief in reinvesting earnings to generate greater value for shareholders. In his February letter to shareholders, Buffett reassured them that the majority of their funds would continuously be invested in equities—primarily American stocks.

The absence of dividend payments has been a point of contention for some shareholders who seek income, as Patti mentioned. He highlighted that his firm conducted research among investors when creating the ETF. “Who doesn’t want to invest like Buffett but also receive an income?” he said.

To address this demand, the VistaShares Target 15 Berkshire Select Income ETF aims to provide an annual income of 15% through a strategy that includes selling call options and offering monthly distributions of 1.25% to its shareholders. This income-focused approach is becoming increasingly popular in the ETF market as asset managers launch more funds aimed at capturing income opportunities while navigating market volatility.

Source
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