On April 2, 2025, U.S. President Donald Trump announced a flurry of sweeping new tariff policies and essentially sparked a global trade whirlwind. Since the tariffs were announced, the following stock market indices have moved by the magnitudes below (as of April 14):
In less than two weeks, stocks across each industry sector and of varying size (small-caps and mega-cap) have experienced volatility levels not seen in quite some time. It's clear that uncertainty is driving market sentiment right now, and the negative returns illustrated above underscore just how panicked investors really are. Yet, as convoluted as this may sound, the ongoing sell-off across the capital markets could pave the way for a lucrative buying opportunity.
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Let's explore how famed investor Warren Buffett has been navigating the stock market over the last year or so. From there, I'll break down some companies in his portfolio that I still like and reveal my top pick among Buffett's holdings.
Two industries that Buffett tends to favor are financial services and consumer goods. I think this makes sense, as these industries are not as exposed during times of economic uncertainty. While patterns among consumers may fluctuate, companies with strong brand moats and essential services should still exhibit some degree of resiliency even during periods of economic slowdowns.
For these reasons, three Buffett stocks that I like at the moment are Visa, Amazon, and Coca-Cola. Each of these businesses has global appeal, and all of them provide services and products that people will flock to -- despite periods of uncertainty.
While I think all of the stocks above make for great buy-and-hold positions, let's take a look at Buffett's actions before choosing which of his portfolio holdings may be the best option right now.
Image source: The Motley Fool.
Prior to the tariff-driven chaos, the stock market had actually been roaring for most of the last two years. Improving economic indicators such as falling inflation, reduction of interest rates by the Federal Reserve, beaming euphoria around artificial intelligence (AI), and even the presidential election in November contributed to an overall bullish sentiment in the stock market.
However, while many money managers were hitting the buy button on repeat, Buffett took a much different approach. In fact, over the last year, the Oracle of Omaha significantly reduced his exposure to core holdings including Apple, Bank of America, and Citigroup.
Of note, Buffett did redeploy some of this newfound capital into alternative opportunities such as Constellation Brands and Domino's Pizza. But even so, Buffett's stock purchases over the last few quarters have been nominal, all things considered.
Rather, Buffett's approach has been more focused on stockpiling cash and holding Treasury bills. As of Dec. 31, Buffett's portfolio boasted a record $334 billion of cash and short-term investments -- roughly 86% of which was held in U.S. T-bills.
There are pros and cons to buying or selling any of the Buffett stocks I've referenced here. But as I alluded in the intro, there is widespread uncertainty fueling the markets right now. With that in mind, investors should be prepared for outsized whipsaw-type movements across individual stocks at any moment.
Instead of trying to find a needle in a haystack, I think the most prudent strategy for investors right now is to diversify. By gaining exposure to companies of different sizes and industry sectors, you will be able to achieve some form of risk mitigation while the broader market continues to experience turbulence.
So with all that said, my top Buffett stock to own right now is (wait for it!) Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B).
Between 1965 and 2024, Berkshire Hathaway stock has gained 5,502,284%. To put that into perspective, the S&P 500 has gained 39,054% during the same time period.
This trend doesn't appear to be an anomaly, either. As of this writing, shares of Berkshire Hathaway have managed to avoid the steep declines seen across major indices and leading mega-cap technology stocks so far this year -- gaining 16.5% compared to losses seen in each of the "Magnificent Seven" and various indices.
BRK.B data by YCharts.
Buffett's decision to be a net seller of stocks over the last several quarters looks like a genius move in retrospect. Unlike many other fund managers, Berkshire is now equipped with loads of cash that can be deployed to find value in the market if Buffett chooses to go that route. Alternatively, he could also keep buying Treasuries as a safety measure. In either situation, Berkshire is positioned to make money right now, while the average investor continues to scramble.
By owning Berkshire stock, investors achieve exposure to all of the companies I said that I like in this piece. Owning Berkshire over any singular Buffett stock helps investors achieve a diverse position that's also insulated and has a long-term track record of beating the broader market.
For these reasons, Berkshire Hathaway is my top Buffett stock to load up on right now.
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Bank of America is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Citigroup is an advertising partner of Motley Fool Money. Adam Spatacco has positions in Amazon and Apple. The Motley Fool has positions in and recommends Amazon, Apple, Bank of America, Berkshire Hathaway, Domino's Pizza, and Visa. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.