Berkshire Hathaway Is a Great Bear Market Stock. These 2 Are Even Better Buys.

5 hours ago 2

Jeremy Bowman, The Motley Fool

Sat, May 10, 2025, 4:32 PM 7 min read

In This Article:

  • Warren Buffett has delivered alpha successful portion by outperforming successful carnivore markets.

  • He is known for accumulating currency to instrumentality vantage of sell-offs erstwhile the marketplace crashes.

  • Berkshire besides has a fig of subsidiaries successful security and utilities that make profits careless of the authorities of the economy.

  • 10 stocks we similar amended than Altria Group ›

After 60 years of moving Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), Warren Buffett volition beryllium riding disconnected into the sunset.

The 94-year-old, wide regarded arsenic the top capitalist of each time, announced astatine Berkshire's yearly shareholder gathering implicit the play that Greg Abel would instrumentality implicit arsenic CEO by the extremity of the year.

Buffett is regarded arsenic an investing and concern fable for a fig of reasons, and Berkshire's way grounds speaks for itself. He fundamentally doubled the yearly instrumentality of the S&P 500 (SNPINDEX: ^GSPC) implicit his career, delivering phenomenal returns for his investors on the way.

Warren Buffett astatine  a conference

Image source: The Motley Fool.

Arguably, Buffett was astatine his champion during carnivore markets, and Berkshire's top periods of outperformance often came during sell-offs. He built his conglomerate for longevity with durable, all-weather businesses similar security companies, and the famed worth capitalist was capable to capitalize connected banal marketplace sell-offs and instrumentality vantage of deals successful the backstage marketplace arsenic helium often kept a ample warfare thorax of currency connected manus to beryllium acceptable erstwhile a bully worth presented itself.

While we're not successful a carnivore market, the S&P 500 was connected the verge of 1 not agelong ago, and 2025 has already fixed investors plentifulness of volatility. In this environment, Berkshire's estimation for stableness has served it good arsenic it's outperforming the S&P 500 by a wide margin, and the illustration beneath includes the 5% diminution aft Buffett announced his retirement.

BRK.B Chart

BRK.B information by YCharts

As bully arsenic Berkshire has been successful carnivore markets nether Buffett, determination are a fewer different stocks that person been adjacent better, outperforming Berkshire not conscionable this year, but successful anterior years. Let's instrumentality a look astatine 2 of them.

Altria (NYSE: MO) hasn't been a apical banal implicit the past decade, but its show implicit its past has been dominant, particularly erstwhile factoring successful dividends reinvested.

Altria is presently the home seller of its Marlboro and different cigaret brands, arsenic good arsenic smoke-free products similar on! oral nicotine pouches and NJOY vapes. Earlier successful its history, it was a planetary institution combined with Philip Morris International.

As a baccy company, Altria has the vantage of selling a recession-resistant product, arsenic smokers and different consumers of its products thin to bargain them careless of the authorities of the economy. Altria's high-yield dividend and presumption arsenic a Dividend King, having raised its dividend 59 times successful the past 55 years, besides makes it an charismatic banal successful a down marketplace arsenic it has reliably paid expanding dividends for astir arsenic agelong arsenic Buffett's been CEO.


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