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Veteran Investor Calls Berkshire Hathaway (BRK-A) “the Top-in-Class” Defensive Name

In the current environment, defensiveness is the best stance, and Berkshire Hathaway (BRK-A, BRK-B) is the “top-in-class” name when it comes to defensive stocks, Joe Tigay, the Portfolio Manager of the Rational Equity Armor Fund told Yahoo Finance recently.

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Why Defensiveness Is Appropriate

“The bond market is flashing major warning signs of a recession, so I want to get a little defensive for the next couple of quarters, even though my long-term approach to U.S. stocks is bullish,” Tigay explained.

The longtime investor added that he does not see any positive catalysts on the horizon at this point.

Why Berkshire Is a Top Defensive Name

“Berkshire has done a great job of hoarding cash,” while Warren Buffett is likely to use the cash “very effectively,” Tigay said. Buffett will be able to find cheap stocks to buy in the current environment, Tigay indicated.

Additionally, Berkshire has “a very stable portfolio of stocks that can weather these storms,” he asserted.

Finally, investors are likely to look to buy value stocks in the short term, Tigay believes.

Berkshire owns a significant number of names that many view as value stocks.

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This article is originally published at Insider Monkey.