Is Berkshire The #1 Stock to Buy In This Market?
Warren Buffett isn’t just a famous investor, he’s in a league of his own. Over nearly six decades, he’s compounded Berkshire Hathaway’s value at close to 20% annually. If you invested a meagerly $100 and let it grow at that pace for 60 years, you’d end up with over $5.6 million.
Yet despite Berkshire’s trillion-dollar size today, most Americans couldn’t tell you exactly what the company does. That’s partly by design. Buffett never built a flashy brand but he built a fortress of businesses, a collection so vast and durable that it quietly became one of the largest and most resilient conglomerates in history.
Key Points
- Berkshire’s decentralized model and $334 billion cash pile make it built to thrive in any market.
- Berkshire’s next leadership to carry forward his disciplined approach.
- While future growth will be slower, Berkshire remains a high-quality, resilient way to invest across the U.S. economy.
1 Trillion Reasons to Own Berkshire
At last check, Berkshire’s market value was around $1.1 trillion, putting it in the company of tech giants. And while nearly 400,000 people work across its dozens of subsidiaries, the headquarters in Omaha runs with a skeleton crew of just 27 employees, a powerful testament to Buffett’s obsession with lean, decentralized management.
What makes Berkshire so different is that it doesn’t rely on any single business. The company fully owns household names like GEICO, Duracell, and See’s Candies, alongside industrial titans like BNSF Railway and Berkshire Hathaway Energy.
Insurance, energy, transportation, retail, it’s a collection built for all seasons. Many of these businesses throw off predictable, recession-resistant cash flow, giving Berkshire a rare ability to thrive in both bull and bear markets.
And that’s just the wholly owned side. Berkshire’s investment portfolio reads like a who’s who of American capitalism: Apple, Coca-Cola, American Express, Bank of America, Chevron. Few realize that the dividends Berkshire collects each year from these stakes amount to billions of dollars, cash that Buffett can redeploy whenever attractive opportunities arise.
Berkshire Is a Cash Machine
Speaking of cash, Berkshire is practically drowning in it. At last count, the company was sitting on about $334 billion in cash and short-term securities. Buffett has often described this war chest as a strategic weapon, dry powder ready to pounce when panic strikes. If the economy slips into recession and valuations fall, Berkshire is uniquely positioned to buy world-class assets when others are forced to sell.
Of course, Buffett is no longer a young man. At 94, he’s candid about the fact that he won’t be leading Berkshire forever. Fortunately, the company’s future leadership is in experienced hands. Greg Abel, who oversees Berkshire’s non-insurance businesses, has been groomed to continue Buffett’s culture of discipline, patience, and rational capital allocation.
Berkshire’s Scale Is Eye-Opening
And within Berkshire, the scale of individual businesses might surprise you. Its energy division is one of the largest renewable energy producers in the U.S. Its BNSF railroad covers 32,500 miles across 28 states and moves enough grain each year to feed hundreds of millions. Even its solar farms rank among the largest globally.
Is now the right time to buy Berkshire Hathaway stock? The shares aren’t screaming cheap today, and given the size of the company, investors should temper expectations: Berkshire likely won’t replicate its earlier growth rates.
That said, it remains one of the safest, most diversified ways to invest across a wide swath of the American economy. For long-term investors willing to be patient, it still offers a rare blend of quality, resilience, and intelligent stewardship.
One strategy, if you’re considering it, might be to accumulate shares slowly over time — taking advantage of any dips along the way. In a market that often feels increasingly chaotic, there’s something reassuring about owning a piece of that.