If I Could Buy Only 1 Warren Buffett Stock Amid the Stock Market Chaos, This Would Be It

As markets lurch between euphoria and despair, investors are increasingly drawn to anchors of stability. Among them, Berkshire Hathaway (BRK.A, BRK.B) stands out. With its stock surging 17% year to date despite a broader market selloff, the company’s resilience offers a masterclass in risk management. But if forced to choose just one stock to weather the storm, the answer is clear: Berkshire itself.

The Case for Berkshire’s Operating Businesses: A Fortress Built on Steadfast Assets

At the heart of Berkshire’s value lies its operating businesses, now accounting for over 70% of the company’s worth. These are not speculative bets but industrial giants with durable competitive advantages. Consider BNSF Railroad, which transports 20% of U.S. intermodal freight, and Berkshire Hathaway Energy (BHE), a utility and energy powerhouse serving millions of customers. Together, they contributed nearly 37% of Berkshire’s 2024 operating earnings.

These businesses thrive on moats—scale, regulation, and customer captivity—that tech darlings and AI-driven stocks lack. Even as equity markets wobble, BNSF and BHE generate consistent cash flows, insulated from speculative cycles.

Equity Holdings: A Mixed Bag, but Not the Core Play

Berkshire’s equity portfolio includes names like American Express (AXP), DaVita (DVA), and Kroger (KR). While these companies have strong fundamentals—American Express posted 21% net income growth in 2024, and Kroger’s operating profit surged 31%—they remain exposed to market volatility. For instance, AXP’s stock fell 15% YTD in 2025, and DaVita’s shares dipped 6% due to operational hiccups.

Buying individual holdings risks overconcentration. Buffett himself has shifted focus away from public equities, offloading two-thirds of his Apple stake to bolster Berkshire’s cash reserves. The lesson? Invest in the engine, not the side bets.

Cash Reserves and Strategic Flexibility: A $334 Billion War Chest

Berkshire’s $334.2 billion cash pile—a 40-year high—acts as both a safety net and a catalyst for growth. This liquidity allows Buffett and his team to pounce on opportunities during downturns, as they did during the 2008 crisis. With debt totaling $124.8 billion largely tied to BNSF and BHE (both creditworthy entities), Berkshire’s balance sheet remains a fortress.

Valuation: A Premium Price for a Premium Asset

Critics point to Berkshire’s price-to-book (P/B) ratio of 1.8—a 10-year high—as a red flag. Yet adjusted for its $528.2 billion controlled business valuation (11.1x operating earnings) or 13.8x when accounting for net cash, the stock appears reasonably priced. Historically, Berkshire’s book value has grown at an 18.3% CAGR since 1965, dwarfing the S&P 500’s 10.2%.

Why Now?

The current environment—high volatility, tech overvaluation, and looming corrections—aligns perfectly with Berkshire’s strengths. With AI stocks underperforming in 2025 and traditional sectors stabilizing, Buffett’s focus on cash-generative, recession-resistant businesses becomes a winning formula.

Conclusion: The Ultimate Buffett Stock

Investing in Berkshire Hathaway today is akin to buying a diversified portfolio of moated businesses, a cash-rich conglomerate, and a proven capital allocator—all in one. While its P/B ratio may seem elevated, the company’s operational dominance, fortress balance sheet, and $1.15 trillion market cap justify the premium.

The data speaks volumes:
- 17% YTD outperformance vs. the S&P 500’s -8.3%
- 70%+ of value tied to resilient operating businesses
- $334 billion in cash to capitalize on market dislocations

In a chaotic market, Berkshire is the closest thing to a no-regrets play. The question isn’t whether to buy—it’s why you’d look elsewhere.