When it comes to top-notch money managers on Wall Street, Berkshire Hathaway (BRK.A -1.45%) (BRK.B -1.54%) CEO Warren Buffett is in a class of his own. Since taking over Berkshire six decades ago, the appropriately named "Oracle of Omaha" has led his company's Class A shares (BRK.A) to a cumulative return that topped 6,475,000%, as of the closing bell on March 27.
If we knew a recession was coming, most investors would stop putting money into the stock market. To be fair, most stocks would likely fall -- at least a little -- if a recession were to arrive in the United States.
Berkshire Hathaway (BRK.A -1.45%) (BRK.B -1.54%) is one of the most closely watched stocks on Wall Street. Its CEO, Warren Buffett, is one of the most followed investors of the modern era.
Volatility has returned to the financial markets. The prices of many stocks declined in recent weeks, as traders grew more fearful of tariffs, geopolitical tensions, and a potential downturn in the economy.
American stocks have crashed this year as concerns about Donald Trump tariffs rose. The top blue-chip indices like the Dow Jones, Nasdaq 100, and S&P 500 have all moved into a correction as recession odds have soared.
After posting double-digit gains during both 2023 and 2024, the S&P 500 and Nasdaq Composite have gotten off to an underwhelming start this year. As of this writing, the S&P 500 is down 3% on the year while the tech-heavy Nasdaq index has fallen by a more pronounced 7%.
Many investors pay close attention to whatever Warren Buffett says. The billionaire's conglomerate, Berkshire Hathaway (BRK.A -1.45%) (BRK.B -1.54%), has outperformed the market by a wide margin since he took it over in 1965, and he shares advice freely with his shareholders and followers.
There are well-heeled stock investors who believe in holding a tightly concentrated portfolio, and those more comfortable with a long list of diversified titles. Judging by the charity-focused investment vehicle that bears his surname, Microsoft (MSFT -2.96%) co-founder and former CEO Bill Gates belongs firmly in the first camp.
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