Veteran Investor Calls Berkshire Hathaway (BRK-A) "the Top-in-Class" Defensive Name

In the current environment, defensiveness is the best stance, and Berkshire Hathaway (BRK-A, BRK-B) is the "top-in-class" name when it comes to defensive stocks, Joe Tigay, the Portfolio Manager of the Rational Equity Armor Fund told Yahoo Finance recently.

Why Defensiveness Is Appropriate

"The bond market is flashing major warning signs of a recession, so I want to get a little defensive for the next couple of quarters, even though my long-term approach to U.S. stocks is bullish," Tigay explained.

The longtime investor added that he does not see any positive catalysts on the horizon at this point.

Why Berkshire Is a Top Defensive Name

"Berkshire has done a great job of hoarding cash," while Warren Buffett is likely to use the cash "very effectively," Tigay said. Buffett will be able to find cheap stocks to buy in the current environment, Tigay indicated.

Additionally, Berkshire has "a very stable portfolio of stocks that can weather these storms," he asserted.

Finally, investors are likely to look to buy value stocks in the short term, Tigay believes.

Berkshire owns a significant number of names that many view as value stocks.

While we acknowledge the potential of BRK-A, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BRK-A but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.