close
close
Is Berkshire Hathaway Inc. (BRK-B) one of the best beginners shares?

We recently published a list of Starter stock portfolio 12 safe shares for purchase. In this article we will take a look at where Berkshire Hathaway Inc. (NYSE: BRK-B) stand against other best stocks of the best beginners.

The US stock market has experienced a turbulent first quarter of 2025, which is characterized by increased volatility and negative returns over the main indices. The concerns about tariffs, economic data and the performance of important technology stocks contributed to this challenging period.

The year began with the revelation of Deepseek, an artificial intelligence software (AI) developed in China, which competed with its US competitors like Chatgpt. The software was considered revolutionary compared to others and sent shock waves in the global markets. Reuters reported a global sale in the US indices, with one of the large technology companies alone lost $ 593 million in one day.

The US government has quickly implemented guidelines that promote US technology companies and at the same time reduced the effects of deepseek-KI, such as the use of tariffs against trading in Chinese companies.

The uncertainty of the US economy added market volatility after the Federal Reserve announced that it would maintain interest rates between 4.25% and 4.50% at short notice. The banking sector, which is considered a good investment in times of high interest rates, is not completely immune. Analysts that were previously considered a year with low interest in 2025 will now reveal the effects of possible NPLs (needy loans) due to consistent Fed rates.

In March, President Trump announced other global tariffs in Europe and China, which promotes investors. Europe introduced to tariffs in retaliation measures. Emily Bowersock Hill, CEO and founding partner at Bowersock Capital Partners, who has an managed assets of $ 850 million, answered in an e -mail to the methodology for calculating the USA as:

“So simple and frankly primitive that he asks the market that its architects have ever taken Econ 101?”

The United States announced tariffs of 54% for Chinese goods that will come into force on April 9, 2025. In response to this, China was “mutual” tariffs for US goods of 34%, as reported by the state’s official news agency. This led to the American market indices that have experienced the greatest decline since Covid-19. Investors get the effects of these tariffs on the offer chains of companies worldwide.

The US economy is considered a “continuous stagflation”, which is defined as a continued inflation with very little growth and high unemployment. The CBOE Volatility Index (also known as VIX) is currently 29.68%and is well above the 1-year average of 17.6%. Under such economic conditions, investors should strive for stocks that achieve constant/ growing income, dividend growth, low cyclicity and considerable cash flow and have a permanent competitive advantage. Systemically important sectors are therefore ideal for investors, including energy, real estate, healthcare, finance and technology.

(Tagstotranslate) Berkshire Hathaway

Leave a Reply

Your email address will not be published. Required fields are marked *