Berkshire Hathaway: The Most Consistent Stock on the Market

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Dow Jones Industrial Average Notizia

NASDAQ Composite,Berkshire Hathaway Inc Class A

Stocks Analysis by ValueWalk (Dave Kovaleski) covering: Dow Jones Industrial Average, NASDAQ Composite, Berkshire Hathaway Inc Class A. Read ValueWalk (Dave Kovaleski)'s latest article on Investing.com

The markets have been anything but boring lately, with wild swings up and down over the past two months in particular. If you find it all a bit unsettling, consider Berkshire Hathaway (NYSE:Some might even call the company run by Warren Buffett for almost 60 years boring — and with all the drama playing out in the markets lately, boring is just fine.

Since 2005, it has had only three negative years — 2008, when it fell 32% but beat the S&P 500, which plummeted 38% that year; 2011, when it fell 5% and the S&P 500 was flat; and 2015, when Berkshire Hathaway stock dropped 12% and the market was down 1%. The major benefit of owning a boring, steady stock like Berkshire Hathaway in a diversified portfolio is that it can provide balance during times of volatility, because it often doesn’t track with the major benchmarks. So, while you may see theIt is no fluke or accident that Berkshire Hathaway stock has been so consistent over the years; it is by design.

The portfolio of private companies includes some household names like Duracell, Fruit of the Loom, GEICO, and Dairy Queen, but it also includes a lot of consumer defensive companies ­ — those built to perform no matter the market. These include insurance companies, railroads, construction firms, homebuilders, energy companies, clothing retailers, among others.

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