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Matt DiLallo, The Motley Fool
Tue, Apr 8, 2025, 4:30 AM 5 min read
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I've been strategically gathering my currency presumption implicit the past couple of years arsenic the marketplace has roared higher. I wanted to person a cushion successful lawsuit determination was a crash.
That turned retired to beryllium a precise omniscient decision. My currency presumption has helped mute immoderate of the interaction of the caller major sell-off portion providing maine with superior to spell connected the offensive.
I program to deploy immoderate of my currency presumption this week to capitalize connected the caller market volatility caused by the Trump administration's "reciprocal tariff" policy. However, I'm holding backmost immoderate currency successful lawsuit the sell-off worsens.
I'm putting together a buying database of high-quality stocks I'd emotion to bargain if they caput adjacent lower. Topping my database are Berkshire Hathaway (NYSE: BRK.B)(NYSE: BRK.A), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP). Here's wherefore I'd load up connected this trio if the sell-off intensifies.
Warren Buffett's Berkshire Hathaway is simply a wealth-creating machine. It owns a diversified portfolio of fantabulous operating companies. Berkshire besides has a large concern portfolio of high-quality publically traded stocks. The operating businesses and portfolio make currency that Berkshire tin deploy erstwhile it finds compelling opportunities, specified arsenic acquiring caller operating companies oregon buying much stocks.
Given the emergence successful valuations implicit the past mates of years, Berkshire Hathaway has been gathering currency portion waiting for much compelling concern opportunities. The institution ended the 4th fourth with a grounds $334 cardinal currency pile, built up done retained earnings, dividend payments, and trimming its concern portfolio.
That monolithic currency presumption gives Berkshire tremendous fiscal flexibility to upwind a imaginable recession. It besides puts the institution successful a beardown strategical presumption to capitalize connected opportunities that could originate during an economical downturn. It's a top-quality institution that I wouldn't hesitate to load up connected if its banal terms takes a bigger deed from a continuation of the marketplace crash.
Shares of Google's genitor company, Alphabet, person already taken a large deed during the sell-off, falling astir 30%. I already started adding to my presumption past period and would emotion to bargain adjacent much shares if they proceed their descent.
One happening I emotion astir Alphabet is its fiscal strength. The exertion titan ended past twelvemonth with implicit $110 cardinal of cash, currency equivalents, and marketable securities connected its equilibrium expanse against little than $12 cardinal of debt. Meanwhile, the company's halfway concern successful search, cloud, and streaming generates monolithic currency flows (the institution produced astir $25 cardinal successful escaped currency travel successful the 4th fourth alone).
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