In this article, we will take a detailed look at the 11 Defensive Stocks Billionaires are buying amid US Trade Tariff Uncertainty.
Usually, anxiety triggered by geopolitical tensions, monetary policy uncertainties, trade wars, and tariffs would be enough to prompt investors to adopt defensive strategies in the markets. Yet that has not been the case, as major US equities have surged to record highs, resulting in valuations becoming excessive.
Defensive stocks, which are often considered safe havens in times of uncertainty, have been relegated to the sidelines. According to Todd Sohn of Strategas Asset Management, the influence of the defensive sector on major indices is at a 35-year low.
For Matt Maley, Chief Market Strategist at Miller Tabak + Co., investors are essentially playing with fire by shunning defensive stocks, given the ever-unending uncertainties and fluid situation.
“The war may or may not get worse, but given that any upside potential for stocks is limited due to extended valuations, investors should be taking more precautions,” Maley said.
The Wells Fargo Investment Institute is advising investors to increase their exposure to defensive stocks, given the uncertainty surrounding tariffs that is expected to persist into year-end. The utility sector remains a top pick for Wells Fargo Strategists, as it is well-positioned to benefit from the build-out in artificial intelligence. In addition, utilities will always act as a hedge against market volatility and economic risks, as they are shielded from tariffs.
Our Methodology
We used the Finviz stock screener to compile a list of 30 top defensive stocks with positive year-to-date returns of over 10%, as of July 29. We then picked the 11 stocks that were the most popular among billionaire investors, as of Q4 2024, using Insider Monkey’s database of billionaire holdings. Additionally, we have mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q1 2025 database of over 1,000 elite hedge funds. Finally, we ranked the stocks in ascending order of their year-to-date returns.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Defensive Stocks Billionaires are buying amid US Trade Tariff Uncertainty
11. The Coca-Cola Company (NYSE:KO)
Year to Date Returns as of July 29: 10.11%
Number of billionaires: 16
Number of Hedge Fund Holders: 87
The Coca-Cola Company (NYSE:KO) is one of the defensive stocks that billionaires are buying amid US trade tariff uncertainty. On July 22, analysts at CFRA reiterated a ‘Buy’ rating and an $80 price target on the stock. The positive stance comes from the company delivering solid second-quarter results that topped analyst estimates.
The beverage giant posted adjusted earnings per share of $0.87, representing a 4% year-over-year increase. It also topped consensus estimates of $0.84. The better-than-expected earnings were driven by solid gross margins that expanded to 62.4%.
The Coca-Cola Company (NYSE:KO) also recorded a 1.4% year-over-year increase in sales to $12.54 billion. The sales increase was driven by a positive price mix, which contributed to a 65% sales growth, offsetting the impact of currency headwinds. Coca-Cola also raised its full-year adjusted earnings per share to $3.04 from $3 for 2025 and to $3.20 from $3.15 for 2026.
The CFRA Buy rating is in response to the company’s global brand value, which is diminishing due to currency headwinds, and confidence in dividend aristocrat trends.
The Coca-Cola Company (NYSE:KO) is a global beverage company that manufactures, markets, and sells beverage concentrates and syrups, as well as finished beverages. Its products include a wide range of sparkling soft drinks, waters, juices, value-added dairy, and plant-based beverages.
10. Altria Group, Inc. (NYSE:MO)
Year to Date Returns as of July 29: 12.05%
Number of billionaires: 11
Number of Hedge Fund Holders: 49
Altria Group, Inc. (NYSE:MO) is one of the defensive stocks that billionaires are buying amid US trade tariff uncertainty. On July 23, Altria Group announced an extension of its $3.0 billion five-year revolving credit agreement, shifting the expiration date from October 2028 to October 2029. The deal, originally signed in October 2023, involves JPMorgan Chase and Citibank as administrative agents. All other terms remain unchanged.
Altria continues to maintain a strong financial position, offering a robust 6.83% dividend yield and making payouts for 55 consecutive years. The involved lenders already provide Altria with financial services, including investment banking, trust operations, and cash management.
Altria Group, Inc. (NYSE:MO) is a leading American tobacco company known for producing and marketing cigarettes and related products worldwide, while also expanding into innovative nicotine alternatives like electronic vaping devices and oral nicotine pouches as part of its strategy to diversify its portfolio and adapt to shifting consumer preferences.
9. Abbott Laboratories (NYSE:ABT)
Year to Date Returns as of July 23: 12.25%
Number of billionaires: 11
Number of Hedge Fund Holders: 70
Abbott Laboratories (NYSE:ABT) is one of the defensive stocks that billionaires are buying amid US trade tariff uncertainty. On July 21, UBS reiterated a ‘Buy’ rating and a $148 price target on the stock. The bullish stance comes on the heels of the stock coming under pressure following the release of lower fiscal year 2025 sales guidance.
The biopharmaceutical company is facing weakness in its diagnostic segment. However, the weakness has not altered UBS’s positive stance on the company. That’s because the company is experiencing robust growth, with its MedTech division recording 12.2% organic growth in the second quarter, higher than the consensus estimate of 11.2%.
In addition, UBS is buoyed by Abbott’s 6.9% organic sales growth or 7.5% on excluding COVID diagnostics. The research firm expects robust growth in other segments, including the MedTech pipeline, to offset weakness in the diagnostic segment.
Abbott Laboratories (NYSE:ABT) is a global healthcare company focused on creating life-changing technologies and products that span diagnostics, medical devices, nutrition, and branded generic pharmaceuticals. It is focused on improving health and well-being across all stages of life through innovative solutions and a commitment to accessibility.
