What stocks does Warren Buffett of Berkshire Hathaway buy?

Investing in the stock market has become quite difficult. As the coronavirus pandemic hit the world in full force and restrictions were put in place, investors lost billions of dollars in the market as economic sentiment was undermined. However, the market rebounded during the year, and tech stocks surged as work-from-home demands changed the demand dynamics for consumer products.

Then, as investors breathed a sigh of relief, the historic inflationary cycle and Russian invasion of Ukraine shocked the world again in 2022. This effectively divided the market into two halves. One of them was the shares of fast-growing technology companies that lost a significant part of their value. Others were commodity and energy companies, which posted remarkable highs. For the prudent investor, playing the macroeconomic environment would have resulted in significant gains, even as countless others mourned their losses and licked their wounds.

This year, all you can talk about is a recession. The Federal Reserve's cycle of aggressive interest rate hikes, which began last year, aims to slow the economy, cut wages and reduce purchasing power to push prices down. The consequence is a significant slowdown in economic growth, which could lead to a prolonged decline in growth rates, which in certain scenarios can be characterized as a recession.

So what do you do to invest during these times? Well, one approach is to see what the pros are doing. And a professional among professionals is none other than Warren Buffett of Berkshire Hathaway. Berkshire is one of the largest investment holding companies in America, and Mr. Buffett has seen his firm's stock price rise by thousands of percentage points over the past couple of decades. Class A shares of Berkshire, Berkshire Hathaway Inc. (NYSE:BRK-A), are the most expensive stocks on the stock market, with a single share worth a staggering $492,000 as of June 2023. The same share was worth $985 in 1983. Adjusted for inflation, $985 in 1983 would be worth $3,000 today, so it's safe to say that Mr. Buffett's firm has done a lot of things right over the past few decades.