Buffett Has 10% of Berkshire Hathaway’s Portfolio Recession-Resistant Sector

Warren Buffett does not seem to buy and sell stocks based on what is going on with the US economy. Rather He is choosing stocks that can survive all economic climates. That may be why he has 10% of Berkshire Hathaway’s portfolio invested in consumer staples, a sector that’s known for being recession-resistant.

Consumer staples are essential food, beverage, household, and personal products and examples include eggs, milk, toothpaste, soda and detergents.

A look at everybody’s own daily buying habits can demonstrate why consumer staples stocks do not tank in recessions. With inflation running hotter, All people are probably spending less on things like electronics and designer clothes. This applies also to streaming services, but not to consumer staples.