While uncertainty is always the name of the game in investing, the last few months have been particularly chaotic. Global trade tension spurred by President Donald Trump's sweeping tariffs, especially their on-again, off-again nature, has caused investor anxiety to spike.
At a time like this, it's worth it to look at the portfolio of the legendary Warren Buffett to consider what might be some smart, no-brainer investments. Here are my two favorites from the "Oracle of Omaha."
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Although an apparent resolution to the ongoing trade negotiations has been reached, given how much Amazon's (NASDAQ: AMZN) supply chain is tied up with China, investors are right to be wary of the effect Trump's trade policies will have on the company's bottom line.
That being said, I think the threat is overblown for investors looking to hold for the long term -- which is exactly the kind of investing at the core of Buffett's philosophy.
A reescalation of the trade war with China would undoubtedly affect Amazon, but any disruptions would ultimately be temporary. The fact that Amazon's core e-commerce business is so deeply embedded in people's daily lives doesn't change with a temporary slowdown.
Luckily for investors, Amazon Web Services (AWS), the cloud service provider and subsidiary of Amazon, is much less exposed to tariffs and changes in consumer spending. It's also the fastest-growing part of Amazon's empire, up 17% year over year in first-quarter 2025, as AI models demand more and more compute power.
In the company's recent earnings call, Amazon CEO Andy Jassy cited just how big an opportunity AWS is addressing: "Before this generation of AI, we thought AWS had the chance to ultimately be a multi-hundred-billion-dollar revenue run rate business. We now think it could be even larger."
Amazon is in a strong position to succeed in the highest growth area of the economy, AI, while continuing to enjoy a significant moat around its massive core e-commerce business.
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), Warren Buffett's own company, has proven itself a winner time and again for the last 60 years. Its investments in outside companies are the stuff of legend, and its diverse set of internal businesses spanning several recession-resistant industries provides it with a steady flow of cash.
Now, quite famously, the company is sitting on its largest war chest ever, a sum of cash that would make most countries jealous. This makes Berkshire a wonderful hedge against any sort of major economic downturn or crisis.
The company can use those funds to make strategic investments at a time when most investors are scrambling to protect their capital. Just as in the aftermath of 2008, a financial crisis offers those with major war chests like Berkshire the opportunity to find incredible deals.
Take, for example, Buffett's investment in Bank of America following the Great Financial Crisis. In six years, Buffett turned a $5 billion investment into an on-paper profit of $12 billion (Berkshire held on to its shares).
Even if a major crisis doesn't present itself any time soon, Berkshire's insurance business is strong. It's not without obstacles. Last year's multiple hurricanes and this year's Los Angeles fires had a major effect on Berkshire's bottom line, but as time goes on, premiums will adjust to make up for any increased rates of damage.
And yes, the elephant in the room is that Buffett is stepping down as CEO of Berkshire, but I think fears surrounding his departure are overblown. The company he built is infused to the core with his ethos, and his successor, Greg Abel, is a competent replacement whom Buffett has been mentoring for many years.
Political and economic uncertainty will always be part of investing, so it's critical not to jump ship when things get particularly rocky. It's why investing in companies you really believe in and want to hold for the long term is the best strategy. It makes it so much easier to take the long view and remain level-headed when the economy dips.
For my money, both Amazon and Berkshire are excellent additions to any portfolio. Amazon continues to deliver growth and innovation, while Berkshire Hathaway stands as a pillar of stability and opportunity in times of crisis.
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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. Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.