Are You Worried About a Recession? This Trillion-Dollar Stock Might Be the Best Way to Protect Your Portfolio in 2026.
Key Points
This diversified conglomerate has a tremendous cash hoard that provides it with an invaluable financial cushion in adverse economic times.
In addition to proper risk management, the collection of durable and profitable operating businesses makes this an attractive stock to own.
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Consumer spending represents nearly 70% of the U.S. economy. Consumer confidence domestically hit an all-time low in April. So it's understandable if investors are starting to get concerned about a looming economic downturn.
If recessionary fears are on your mind these days, take a look at this trillion-dollar stock. It might just be the best way to protect your portfolio in 2026.
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Over the decades, Warren Buffett, who is no longer the CEO of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB), built the conglomerate into a financial fortress. Operating with a disciplined and conservative philosophy, the business is a relatively safe stock pick for investors worried about a recession. It has been able to navigate numerous headwinds in the past.
As of Dec. 31, 2025, Berkshire Hathaway had over $370 billion in cash and treasuries on the balance sheet, a massive financial cushion that protects it in essentially any adverse economic scenario. The company can be aggressive and play offense at opportunistic times.
What's more, its collection of profitable operating businesses in insurance, energy, railroads, manufacturing, services, and retail has proven to be durable over time.
No one knows when the next recession will strike, but these industries are natural parts of the economy. In times of heightened market uncertainty, Berkshire Hathaway is a solid addition to your portfolio.
Should you buy stock in Berkshire Hathaway right now?
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
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