2 Stocks That I’d Buy Even If a Recession Starts

With inflation proving to be harder to control than many experts predicted, and consumers starting to clearly pump the brakes on spending, there is a real possibility of a U.S. recession in the near future. To be clear, we could certainly still see the economic “soft landing” that the Federal Reserve has been aiming for, but it’s not a guarantee by any means.

Therefore, it can be a smart idea to set your portfolio up with stocks that should do well regardless of what happens with the economy. With that in mind, of the roughly 40 stocks in my own portfolio, these are the two I’d worry about least if a recession were to arrive.

An incredible collection of assets that can win in tough times

If I could own only one stock, it would probably be Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). For one thing, Berkshire isn’t just a single business. It’s more like a diversified investment portfolio all in one stock.

Berkshire owns more than 60 subsidiary businesses, including recession-resistant giants like GEICO, Berkshire Hathaway Energy, and BNSF Railroad. It also has a stock portfolio worth more than $350 billion that includes massive stakes in Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), American Express (NYSE: AXP), and several others, with most of the portfolio handpicked by legendary value investor Warren Buffett himself.

Perhaps the biggest reason I’m comfortable owning Berkshire even during bad times is its stockpile of nearly $168 billion in cash (as of Dec. 31). Even after the $30 billion Buffett insists on keeping in reserves, this leaves almost $140 billion that is currently earning billions in interest income but that could be put to work if opportunities arise. Berkshire’s financial flexibility has allowed the company to make some great investments in bad economies — including the highly successful Bank of America stake — so a recession could ultimately be a net positive for long-term Berkshire investors.