5 Cash-Rich Defensive Stocks to Buy Before Recession

In this article, we discuss 5 cash-rich defensive stocks to buy before recession. If you want to read about some more cash-rich defensive stocks to buy before recession, go directly to 10 Cash-Rich Defensive Stocks to Buy Before Recession.

5. Berkshire Hathaway Inc. (NYSE:BRK-B)

Number of Hedge Fund Holders: 109

Free Cash Flow as of August 29: $20.77 billion

Berkshire Hathaway Inc. (NYSE:BRK-B) is a diversified holding company with interests in finance, transport, and utility businesses. On August 8, the company posted earnings for the second quarter of 2022, reporting a revenue of more than $76 billion, up over 10% compared to the revenue over the same period last year. The operating earnings during the quarter stood at around $9.28 billion, up more than 38% compared to the same period last year. The firm has outperformed the S&P 500 this year even as recession fears loom over the market. 

Berkshire Hathaway Inc. (NYSE:BRK-B) is seeking to make a bid for full control of energy giant Occidental, reports in the media suggest. Berkshire chief Warren Buffett has acquired a 50% stake in the firm in the past few months. 

At the end of the second quarter of 2022, 109 hedge funds in the database of Insider Monkey held stakes worth $17 billion in Berkshire Hathaway Inc. (NYSE:BRK-B), compared to 104 in the preceding quarter worth $19 billion.

In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE:BRK-B) was one of them. Here is what the fund said:

“Diversified holding company Berkshire Hathaway Inc. (NYSE:BRK-B) reported strong earnings during the quarter and benefited from continued share repurchases below intrinsic value. The company also announced significant deployments of excess cash during the quarter, including the acquisition of Alleghany and a large increase in its stake in Occidental Petroleum.”