If a Stock Market Crash Is Coming, This May Be the Best Warren Buffett Stock to Buy
2026-10-04 20:17
•Prosper Junior Bakiny •The Motley Fool
•• •• Axe Cap view
Why Berkshire Hathaway Matters for South African Investors Today
Berkshire Hathaway’s cash-rich, diversified model makes it a standout if global markets tumble, with clear lessons for JSE watchers.
Berkshire Hathaway has long been Warren Buffett’s safety net when the storm hits, thanks to a vast insurance float and nearly $360 billion in liquid assets. This kind of firepower allows Berkshire to swoop in and buy undervalued assets during market crashes. For South African investors glued to the JSE, this is an important benchmark. While we don’t have an exact local equivalent—none of our giants like Naspers or Sasol have Berkshire’s scale or insurance arm—the key lesson is clear: diversification paired with liquidity is king in downturns. With GBP/USD and EUR/USD volatile, and rand-sensitive sectors choppy, it pays to watch entities with balance sheets that let them pounce when the rand weakens sharply against the dollar. Berkshire’s recent aggressive buybacks also send a strong signal: their management smells value in deep dips. The risk? Global growth stumbles less than feared or the insurance float dries up due to unforeseen liabilities. this is just our opinion and not financial advice
Avoid chasing JSE blue chips solely on rebounds; instead, prioritize South African stocks with strong balance sheets and high liquidity, like Standard Bank or Sanlam, to weather rand volatility and global shocks.
- Standard Bank
- Sanlam
- USD/ZAR
- Global recession less severe than expected
- Unexpected insurance claims impacting liquidity
6/10
Berkshire Hathaway is positioned as an attractive stock to buy ahead of a potential market crash due to its diversified business model, strong insurance division generating $177.5 billion in float, and substantial liquidity of $359.2 billion in cash and equivalents. The company's recent multi-billion dollar share buybacks suggest management believes the stock is undervalued. Under new CEO Greg Abel and with Buffett's investment philosophy embedded in company culture, Berkshire Hathaway is recommended as both a crash-resistant investment and a long-term holding.
Our take is based on reporting first published by The Motley Fool.