Worried About a Stock Market Correction? Here's 1 Rock-Solid Stock to Consider.
2026-10-23 16:45
•Lawrence Nga •The Motley Fool
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One Defensive Giant to Watch Amid Market Jitters
Berkshire Hathaway stands out as a safe haven for investors wary of correction risks.
When markets wobble, it’s tempting to sell everything and sit on cash—but that’s rarely the smartest play. Berkshire Hathaway, Warren Buffett’s flagship, offers a rare blend of stability and optionality. Its hands-on portfolio spans insurance, railroads, energy, and manufacturing, generating steady earnings even when risk assets tumble. More importantly, with $359 billion in cash and Treasuries, it has the ammunition to snap up bargains during downturns. South African investors won’t find a perfect local counterpart, but the principle applies here: look for businesses with diverse income streams and dry powder to deploy when the market corrects. Keep an eye on the USD/ZAR too, as a weaker rand can boost the Rand-hedged value of international holdings like Prosus or Naspers. If the global economy shocks unexpectedly hard, even Berkshire’s diversified model could come under pressure, especially given market-wide liquidity crunches. this is just our opinion and not financial advice
Buy Berkshire Hathaway shares USD-traded for a defensive core holding, while watching USD/ZAR trends to time exposure in dollar-linked local counters like Naspers. Trim if global interest rates spike unexpectedly hard.
- BRK.B
- USD/ZAR
- Naspers
- Sharp global interest rate rises
- Severe liquidity squeeze impacting conglomerates
7/10
Berkshire Hathaway is recommended as a defensive stock choice during potential market corrections due to its diversified business portfolio across insurance, railroads, energy, and manufacturing, combined with $359 billion in cash reserves that provide flexibility to invest in opportunities when markets decline.
Our take is based on reporting first published by The Motley Fool.