Berkshire Hathaway Backs These 3 Stocks Amid Economic Uncertainty
Berkshire Hathaway owns over 30 stocks worth more than $300 billion. Three of its holdings stand out as particularly attractive: American Express, Alphabet, and Ally Financial.
American Express is a financial powerhouse with a unique business model that earns interest income on loans and fees on cardholder spending. Its affluent customer base should help it weather consumer spending downturns.
Berkshire Hathaway has been buying more shares of Alphabet, the parent company of Google, aggressively in the second quarter. Both sides of Alphabet's business generate excellent cash flow, with impressive growth from Google Cloud. Despite its rapid expansion and profitability, Alphabet trades at a reasonable multiple compared to its peers.
Berkshire Hathaway trimmed its stake in Ally Financial by 7% in the second quarter, but this was likely a position-sizing move rather than a bearish outlook. Ally is a leading lender with a strong history of responsible growth and risk management, making it an attractive investment opportunity.