2 Stocks With Incredible Balance Sheets That Can Offer Safety in Tariff Chaos

U.S. President Donald Trump's shocking tariff announcements on April 2 have ignited chaos in the stock market. Major U.S. market indexes have rapidly plunged to near bear market territory, now down between 15% and 22% from their former highs. There are concerns that prolonged tariffs may push the economy into recession.

It's crucial to remain calm and avoid overreacting to a highly fluid situation. America is remarkably resilient. History has shown that businesses and consumers will adjust and bounce back in the long run.

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In these moments, investors should focus on the long term and gravitate to high-quality businesses with the strength to endure this adversity and volatility. Most investors don't think much about corporate balance sheets during bull markets, but they can keep companies afloat (and shareholders at ease) when stuff hits the fan.

Consider parking money in the stocks of these two companies with fortress-like balance sheets. You can't predict what will happen with these tariffs, but you can be reasonably sure these companies will handle whatever comes their way.

1. Berkshire Hathaway

Billionaire Warren Buffett has built a fortune from generations of investing. His holding company, Berkshire Hathaway (NYSE: BRK.B) (NYSE: BRK.A), is his life's work. Buffett made Berkshire a conglomerate in 1965, and today, it's a $1.1 trillion market cap behemoth. The company's diverse portfolio of businesses and assets includes manufacturing businesses, insurance companies, railroads, energy utilities, pipelines, consumer brands, and stakes in dozens of other public companies.

All these subsidiaries function independently, with their earnings flowing to Berkshire Hathaway's balance sheet. The company's operating earnings totaled $47.4 billion in 2024. Berkshire Hathaway's many businesses help ensure that if one subsidiary or industry stumbles, it doesn't drag the whole company down. Berkshire's business ebbs and flows, but it has produced positive cash flow from operations for over a quarter-century without fail. That includes economic crises like the Great Recession and the COVID-19 pandemic.

Berkshire's balance sheet is impressive. The company has a AA credit rating (one of the highest) from S&P Global, which assesses Berkshire as having minimal financial risk and a stable outlook. Additionally, Buffett has continuously raised cash over the past year, putting Berkshire's cash and short-term investments at $334 billion at the end of 2024. Berkshire Hathaway is as good a bet as any to still be around a century from now, making it one of the safest stocks in a very uncertain market.

2. Visa

Almost every consumer, especially in the United States, is familiar with Visa (NYSE: V). Open your wallet or purse, and you'll likely find a Visa-branded debit or credit card. Visa is the world's leading payment network (excluding China). When you pay for something with a Visa payment card, the company's network connects the merchant to your financial institution, verifies the funds, and securely executes the transaction.

One of the biggest misconceptions about Visa is that the company lends money. However, Visa doesn't extend any credit or lend money; the banks that issue credit cards do. Instead, Visa makes money by charging fees on each transaction it processes. Therefore, Visa doesn't face any credit risks. Tariffs could be a mixed bag for Visa. Revenue from its percentage-based swipe fees could increase if tariffs raise prices on goods and services, but tariffs may also cause consumers and businesses to spend less.

Visa's business will fluctuate with the economy, but it's hard to imagine it going off the rails outside of some existential crisis or event that halts payments. COVID-19 was arguably the closest thing to that, and Visa's free cash flow only dropped about 26% during the height of pandemic. Meanwhile, the balance sheet is fantastic. S&P Global rates Visa's credit as AA-, with a stable outlook, only a hair below Berkshire Hathaway's. Visa's leverage equates to a debt-to-EBITDA ratio of just 0.8, and the company has $14 billion in cash and short-term investments. You can confidently seek shelter in this stock amid the tariff chaos.

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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, S&P Global, and Visa. The Motley Fool has a disclosure policy.