This list comprises investments that are resilient in various market conditions, designed to weather any storms that may arise. By diversifying our portfolio with assets from different sectors and risk profiles, we aim to safeguard our investments and navigate through uncertain times with stability and confidence. Our proactive approach underscores our commitment to prudent risk management and long-term financial sustainability.
As investors navigate the turbulent stock market of 2025, CNBC Pro has introduced two new stocks to consider for weathering the storm. One of these stocks, Waste Management (WM), stands atop a mountain of trash, while the other, Berkshire Hathaway, sits atop a pile of cash.
All Weather Stock List: A Closer Look
Introduced by CNBC Pro, the All Weather Stock List aims to provide insights into durable stocks and funds that can offer consistent returns even in challenging times.
Waste Management has been identified as a low-beta, low-volatility stock that has remained relatively stable amidst market fluctuations. With a beta of 0.5, Waste Management is considered one of the steadier names in the S&P 500.
VanEck Durable High Dividend ETF Performance
The VanEck Durable High Dividend ETF (DURA) has shown resilience with a 1% return while the S&P 500 declined by 6% since its inclusion in the list.
The company, known for its trash and recycling services, has historically been viewed as a recession-resistant investment due to its essential nature. Waste Management's consistent revenue streams have proven resilient even during economic downturns, making it an attractive option for investors seeking stability.
Waste Management: A New Addition
Waste Management (WM), a trash and recycling leader, has been added to the list for its low-beta and low-volatility characteristics, making it a stable choice in the current market conditions.
On the other hand, Berkshire Hathaway, the iconic conglomerate led by Warren Buffett, boasts a substantial cash reserve of $334 billion. With a diversified revenue stream that includes a significant portion from the insurance business, Berkshire Hathaway is seen as a fortress in the current market environment.
Berkshire Hathaway: The Iconic Inclusion
Berkshire Hathaway stands out as a fortress in the market turmoil, with Warren Buffett's strategic cash reserves and diversified revenue sources offering a defensive stance.
Both Waste Management and Berkshire Hathaway offer unique value propositions for investors looking to navigate the uncertainties of the stock market in 2025. While Waste Management provides stability and resilience through its essential services, Berkshire Hathaway offers a defensive stance backed by a substantial cash reserve and a history of strategic investment decisions.
Recession-Resilient Sectors
Industries like waste management, funeral services, and tobacco are traditionally considered recession-resistant due to their essential nature, providing stability during economic downturns.
Buffett's strategic cash accumulation is not necessarily a signal of an impending market crash but rather a reflection of his cautious approach to high market valuations. Berkshire Hathaway's defensive posture positions it well to capitalize on future investment opportunities, especially in times of market distress.
Berkshire's Strategic Approach
Warren Buffett's cautious approach towards market valuations has led Berkshire Hathaway to maintain a significant cash position, preparing for potential opportunities in a market downturn.
Future Outlook
Despite market uncertainties, the All Weather Stock List serves as a guide for investors seeking durable options, with potential additions and updates expected throughout the year.
As CNBC Pro continues to monitor market conditions, these two stocks stand out as potential anchors in a volatile investment landscape. Amid the uncertainties in the stock market and economy, investors are looking for stable options to weather the storm of 2025.
