Buffett's Recession Buys: Are They Still Winners?

Ladies and gentlemen, buckle up! We're diving into the mind of the Oracle of Omaha himself, Warren Buffett, and examining the stocks he scooped up during the last two recessions. Are these picks still smart buys in 2025? Let's find out!

The Dot-Com Crash: Buffett's Acquisition Spree

During the dot-com recession of 2001, Buffett didn't just sit on his hands. No way! He went on an acquisition spree, snatching up undervalued businesses left and right. Companies like Shaw Industries, Johns Manville, XTRA, and MiTek became part of the Berkshire family. These weren't just any companies; they were solid businesses with strong fundamentals. Buffett saw the opportunity and pounced!

The Great Recession: Financial Services and Iconic Brands

Fast forward to the Great Recession of 2008-2009. Buffett didn't blink. He saw the market in free fall and loaded up on financial services and iconic American brands. Goldman Sachs and General Electric were his targets. He invested $5 billion in Goldman Sachs, snagging preferred shares with a 10% dividend yield and warrants to purchase common stock. This move alone netted Berkshire Hathaway over $3 billion in profit. Talk about a home run!

Are These Picks Still Winners in 2025?

Now, let's talk about whether these picks are still winners in 2025. Buffett's strategy during recessions has always been about buying quality businesses at discounted prices. He views market declines as "extraordinary opportunities" to invest in strong companies. So, let's break it down:

1. Shaw Industries: This flooring manufacturer has been a steady performer. With the housing market on the rise, Shaw Industries is poised for growth. BUY NOW!

2. Johns Manville: Building materials are always in demand. Johns Manville's strong fundamentals make it a solid long-term hold. DON'T SELL!

3. XTRA: Transportation and logistics are the backbone of the economy. XTRA's strategic acquisitions have positioned it for continued success. HOLD ON!

4. MiTek: The construction industry is booming. MiTek's innovative products and strong market position make it a winner. BUY MORE!

5. Goldman Sachs: Despite the market's ups and downs, Goldman Sachs remains a powerhouse in financial services. Its strong balance sheet and diversified revenue streams make it a no-brainer. HOLD TIGHT!

6. General Electric: GE has had its share of challenges, but its iconic status and diversified portfolio make it a resilient player. Keep an eye on this one; it could be a sleeper hit. WATCH CLOSELY!

The Bottom Line

Buffett's recession buys have proven to be smart picks over the long term. His strategy of focusing on strong business fundamentals and being opportunistic during market downturns has paid off big time. So, if you're looking for stocks that can weather the storm and come out on top, look no further than Buffett's recession buys. They're still winners in 2025!

Stay tuned for more hot takes and market insights. The market is a wild ride, but with the right picks, you can come out on top. BOO-YAH!