Buffett Seen Buying 3 Dividend Stocks in a Crash as Berkshire Holds $375 Billion Cash
Updated
Updated · The Motley Fool · May 17
Buffett Seen Buying 3 Dividend Stocks in a Crash as Berkshire Holds $375 Billion Cash
6 articles · Updated · The Motley Fool · May 17
$375 billion in Berkshire cash at end-2025 underpins the case that Warren Buffett would likely target Johnson & Johnson, McDonald's and Procter & Gamble in a market selloff.
Johnson & Johnson could become attractive on a 20% to 25% pullback, which would push its valuation into the mid-teens and lift its yield toward 2.5% to 3%.
McDonald's has already fallen to about $275 from $340 in February, but at roughly 21 times forward earnings it still may need a broader crash to look cheap enough.
Procter & Gamble, with 71 straight years of dividend increases and a 3% forward yield, is framed as another recession-resistant target if its multiple drops from 20.5 times into the mid-teens.
The analysis is hypothetical rather than a forecast of an imminent crash, using Buffett's long-running 'be greedy when others are fearful' approach as the broader investing lens.
With record buybacks creating a market floor, what catalyst could trigger the downturn Berkshire Hathaway is waiting for?
Is hoarding billions in cash for a future crash a brilliant move, or a costly mistake in this bull market?
Can McDonald's survive the threat from weight-loss drugs to remain a wise recession-proof investment?