Why Berkshire Hathaway Stock Fell 12% in March

Shares of the Warren Buffett-led conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) fell 12% in the month of March, according to S&P Global Market Intelligence. The COVID-19 outbreak accelerated in Europe and the U.S. at the beginning of the month, causing virtually all economically sensitive stocks to fall sharply, as a wide swath of the economy was subsequently ordered to shut down.

The countercyclical Warren Buffett. Image source: The Motley Fool.

Many investors might think the downturn will benefit Berkshire in the long run, as the company had accumulated a stunning $125 billion in cash and cash equivalents on its balance sheet as of year-end. Buffett runs Berkshire to be countercyclical, which means when the tide goes out (and it is most certainly going out now), Berkshire is usually there to make investments at bargain-basement prices. It has exhibited stunning patience during the last five years or so, not having made many major investments since Apple (NASDAQ: AAPL) in 2016.

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Source Fool.com