Buffett's Berkshire Hathaway is Holding Its Ground in the Midst of a Historic Market Downturn, Up 9% So Far This Year

Warren Buffett’s Berkshire Hathaway managed to weather the storm better than most during a turbulent week for the U.S. stock market, as investors sought refuge in the stability of a well-capitalized and diversified conglomerate. Amid the financial chaos triggered by former President Donald Trump’s tough trade policies, Berkshire Hathaway emerged as a relative safe haven.

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Last week, Berkshire’s Class B shares fell by 6.2%, which, while still a significant drop, was far less than the 9.1% plunge suffered by the S&P 500. The tech-heavy Nasdaq Composite fared even worse, falling 10% in the same timeframe.

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Despite this recent downturn, Berkshire Hathaway remains up around 8% year-to-date, supported by its strong foundation in domestic businesses spanning insurance, railroads, manufacturing, energy, and retail.

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A notable technical indicator also highlights Berkshire's resilience. According to Rich Ross, head of technical analysis at Evercore ISI, Berkshire is the only stock among the S&P 500’s 10 largest companies that is still trading above its 200-day moving average.

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While this isn’t a definitive signal of strength, Ross emphasized its importance, noting that Berkshire stands out as the only top-tier stock holding this key line of support.

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Berkshire’s performance comes at a time when the broader market has been rattled by President Trump’s unexpected decision to impose tariffs on several trading partners, escalating fears of a global trade war. The move caused a steep selloff, with the S&P 500 plunging 10% in just two trading sessions.

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The Dow Jones Industrial Average also recorded a historic back-to-back loss of more than 1,500 points each day — an unprecedented streak of market volatility.

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In the face of such uncertainty, Berkshire Hathaway’s appeal lies in its financial stability and the defensive nature of its business portfolio, particularly its dominant insurance operations.

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The company ended 2024 with an enormous $334 billion cash pile, giving it unmatched financial flexibility. For investors spooked by geopolitical tension and erratic market behavior, that kind of balance sheet strength is a major draw.

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Josh Brown, CEO of Ritholtz Wealth Management, pointed out that Berkshire’s position is especially strong because it doesn’t rely on favorable government intervention or policy decisions. “It’s one of the biggest publicly traded companies in the world, with significant exposure to the U.S. economy,” Brown said.

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He noted that investors are correctly distinguishing between companies that need political favors or policy stability to survive and those, like Berkshire, that operate largely independent of Washington’s influence. In an environment where the 10-year Treasury yield, global politics, or trade tensions can cause market swings, Berkshire remains relatively insulated.

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Adding to the headlines, Warren Buffett recently responded to a viral social media post involving his name. The 94-year-old investor denied making any public remarks that were attributed to him in a fan-made video shared by Donald Trump on Truth Social.

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The video suggested that Buffett supported the idea that Trump was deliberately causing the stock market to crash. In response, Buffett issued a statement saying he would not be commenting on the markets or tariff-related issues ahead of Berkshire Hathaway’s annual shareholder meeting scheduled for May 3.

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Buffett's refusal to engage in speculation or public debate about current market movements is consistent with his long-standing approach. He often refrains from reacting to short-term market news, preferring instead to focus on long-term value and fundamentals. This steady-handed philosophy continues to resonate with investors who are seeking safety and rational leadership in an increasingly erratic market environment.

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All things considered, while no stock is immune from broader market selloffs, Berkshire Hathaway has proven more resilient than most. Thanks to its broad exposure to the U.S. economy, massive cash reserves, and low reliance on international politics or central bank policy, it stands as a beacon of stability. In a week where panic selling hit Wall Street hard, Buffett’s conglomerate reminded investors of the value of fundamentals, strong balance sheets, and diversified business models.

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