{
  "id": 8468901,
  "title": "What History Says About Owning Berkshire Hathaway Through a Recession",
  "url": "https://urgent.news/2026/09/19/what-history-says-about-owning-berkshire-hathaway-through-a-recession-8468901",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-19T13:29:00.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/history-says-owning-berkshire-hathaway-132900379.html"
  },
  "original_language": "en",
  "account": "When contemplating the potential impact of a recession and rising interest rates, some investors may consider Berkshire Hathaway (NYSE: BRKB) as a possible defensive holding. Berkshire's wholly-owned, private businesses generate consistent cash flow irrespective of economic circumstances. For instance, in 2009, a rare signal emerged for Nvidia, and now, a similar signal is flashing for Berkshire Hathaway. However, how do Berkshire shares fare during economic downturns?\n\nWhile Berkshire Hathaway's primary value stems from its equity holdings, more than one-third of its market cap represents the stake in its various private enterprises, including Shaw flooring, Fruit of the Loom, GEICO insurance, Clayton Homes, Duracell, and Dairy Queen. These businesses' results are reported differently, and their net profits can be readily utilized by the conglomerate. Unlike stocks, these businesses are less susceptible to economic headwinds.\n\nNevertheless, the theory's validity can be tested by examining Berkshire's performance during recessions. The last 30 years have seen only three recessions, but these were particularly severe, much like the one triggered by the coronavirus in 2020. However, even Berkshire fell victim to this recession. The same applies to the 2008 bear market and the tech-induced setback of the early 2000s.\n\nBerkshire Hathaway's stock did not evade the bear markets but performed near-perfectly opposite to the S&P 500 (SNPINDEX: ^GSPC) between 1999 and 2003 when it finally realigned with the broad market. This is attributed to Warren Buffett's reluctance towards tech stocks that experienced a sharp decline in 2000, making Berkshire a brilliant defensive holding during that period.\n\nDespite these advantages, there's no certainty that Berkshire Hathaway would perform well during an impending recession. First, investors might not recognize the conglomerate's private, cash-generating businesses' potential to withstand economic challenges. Second, Berkshire's significant investment in Alphabet could still make it vulnerable to a technology-led sell-off. Therefore, while Berkshire Hathaway may be a better investment choice during a recession compared to other options, it is not entirely immune to market fluctuations.",
  "summary": null,
  "key_points": [
    "Berkshire Hathaway generates cash flow from private businesses during recessions.",
    "30 years have seen only three recessions, including the 2020 pandemic crisis.",
    "Berkshire's stock performed opposite to S&P 500 during 1999-2003 tech decline."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Motley Fool",
        "title": "What History Says About Owning Berkshire Hathaway Through a Recession",
        "url": "https://urgent.news/2026/09/19/what-history-says-about-owning-berkshire-hathaway-through-a-recession",
        "published": "2026-09-19T13:09:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}