Is Berkshire Hathaway Stock a Buy?
Given the recent volatility in the stock market, it could be a smart idea to find places to put your money that not only are recession-resistant, but that are set up to do well if the market keeps falling. One stock that I own and am seriously considering adding to my position in is Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B).
At first glance, Berkshire might not seem like a great buy. For one thing, the stock significantly underperformed the S&P 500 in 2019 with a gain of 11% versus a total return of 31.5% for the benchmark index. And, for a company whose main business model consists of reinvesting the cash generated by its operating businesses, the lack of recent investment activity is concerning to many investors, as well as to Berkshire's management team.
But there are a couple of big reasons why I think Berkshire could dramatically outperform the market if the current volatility gets worse, or even if a full-scale market crash arrives.
Source Fool.com
