In times of uncertainty like these, market sentiment has continued to fluctuate on hopes of the global consortium of central banks continuing to keep the tops open, amid staggering job losses globally.
In this context, some investors seem to be content with taking on additional risk, and risk assets have been repriced accordingly. That said, as I've suggested in the past, my recommendation for all investors right now is to focus on companies with excellent balance sheets, and ideally a cash buffer, as additional defenses against further financial market turbulence which I believe could be on the horizon.
One of the companies with the best balance sheets out there that has also been one of the best performing stocks over the past half-century is Berkshire Hathaway Inc. (NYSE: BRK.B). This ultra-defensive player operates as a conglomerate, with business interests spanning numerous sectors in excellent defensive categories such as insurance and utilities.
The vast majority of Berkshire Hathaway's Holdings are countercyclical, making this juggernaut an investment go-to for long-term investors worried about further spikes in volatility.
Berkshire’s various subsidiaries have also provided the parent company with a massive cash stockpile which has remained above $100 billion U.S. for some time now. CEO Warren Buffett has not yet put the company's stockpile to work so there is opportunity for the company’s balance sheet to improve further. Should the market continue to struggle, companies like Berkshire are the place to be.
Invest wisely, my friends.
