President Donald Trump’s tariff policies have thrown the stock and bond markets into a frenzy this spring. Businesses and investors alike are clamoring to find the best way to position themselves in the new global trade environment.
Much more detail on how things will eventually settle out is yet to come. But some American companies stand to benefit in almost any final scenario. Here are two that investors should consider having in their portfolios.
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Berkshire Hathaway has unique flexibility
Most press coverage surrounding Berkshire Hathaway (BRK.A -0.16%) (BRK.B 0.11%) and its billionaire leader Warren Buffett focuses on stock holdings and what stocks Buffett might be buying or selling.
Beyond the intrigue of what a master investor like Buffett is thinking, it does make some sense as the 36 holdings in Berkshire’s equity portfolio were worth more than $250 billion as of March 31. The conglomerate was holding a record $348 billion in cash as of the end of the first quarter, too, meaning it has plenty of dry powder for future investments.
Those investments may well be for full ownership of operating companies, though. After all, Berkshire’s operating companies are what provide the cash for the company to reinvest. As of the end of last year, Berkshire held 189 operating businesses.
At the company’s 2025 meeting for shareholders, Buffett announced he would be stepping down as CEO at the end of the year. Greg Abel is his handpicked successor, and Buffett himself said Abel might be better suited to get more out of the businesses Berkshire controls.
They have already been performing very well in recent years. Berkshire’s operating earnings soared by nearly 27% year over year in 2024. They have grown from $27.6 billion in 2021 to $30.9 billion in 2022, $37.4 billion in 2023, and $47.4 billion in 2024. Yet at the shareholder meeting, Buffett expressed his confidence about Abel’s time as the leader of its non-insurance businesses. He noted that Abel has a more hands-on management style and thinks he can address things that Buffett said he has been “relaxed in doing something about it.”
Those businesses focus on domestic goods and services, and should be relatively immune from added costs due to Trump’s tariffs. They include the BNSF railroad and industrial construction companies like truss plate manufacturer MiTek and mobile home maker Clayton Homes.
With a manager like Abel at the helm, Berkshire’s operations could thrive. The company itself also has added flexibility from its cash position, insurance business, and equity portfolio to grow even stronger. Investors should appreciate that stability in turbulent times.
Nucor stock is near a 52-week low
Another all-American company is one Buffett himself might like owning right now. That’s because Nucor (NUE -2.11%) stock is trading only about 12% above its 52-week low price just as some major capital investments are about to begin paying off. That’s from the more than $15 billion in capital the company has dedicated to growth over the past eight years.
The steel business is capital-intensive, and projects can take years from groundbreaking to start-up. Nucor is now reporting that many important projects are nearing completion. They include a new micro-bar mill, steelmaking melt shop, and power transmission tower pole production facility all due to start operations in the third quarter. A new galvanizing and paint coating line complex is also expected to be in production by the end of the year.
In addition to being capital-intensive, steel is a cyclical sector. Nucor stock is now trading at what looks like the bottom of the cycle. And the new equipment beginning operations should have plenty of business as infrastructure projects grow. Nucor will participate in data center and power grid buildouts among other infrastructure activity.
Nucor is North America’s largest steel company. It has minimal exposure to U.S. tariffs, while it is benefiting from tariffs on imported steel. Its dividend yields nearly 2% and has been increased annually for more than 50 straight years. Nucor is one American company that could give investors a nice return as the tariff picture plays out and manufacturing expands across the United States.
Howard Smith has positions in Berkshire Hathaway and Nucor. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
