Prosper Junior Bakiny, The Motley Fool

Sun, Jun 1, 2025, 3:15 AM5 min read

• Even in volatile times such as now, good stocks can be had if one looks carefully and thoughtfully.

• Berkshire Hathaway remains an attractive investment despite its upcoming leadership change.

• Vertex Pharmaceuticals has room to grow in its core market and continues to innovate in new areas.

• 10 stocks we like better than Berkshire Hathaway ›

Some investors are staying away from the market right now due to the volatility stocks have experienced this year and the uncertain near-term economic outlook. Even with these issues, though, stocks are likely to produce superior returns to most other assets over the next decade, as they have consistently done in the past.

Moreover, when things are erratic, it can be a wise strategy to invest in companies that are positioned to perform well over the long term. Two great examples are Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) and Vertex Pharmaceuticals (NASDAQ: VRTX).

Warren Buffett's recent announcement that he would step down from his longtime role as the CEO of Berkshire Hathaway by the end of this year will almost certainly come down as one of the most talked-about pieces of news on Wall Street this year. In the wake of that leadership change, some investors may decide to steer clear of the stock. After all, it was Buffett who led the conglomerate to market-crushing returns over the decades, not Greg Abel, his chosen successor.

Further, Buffett is leaving at an unsteady time economically. Corporations are facing a rapidly shifting global trade environment. Macroeconomic troubles appear likely to take a toll on many companies, even those as strong as Berkshire Hathaway. Can Abel successfully take the reins of the conglomerate, especially at a time like this?

In my view, the answer is yes. Buffett might be irreplaceable, but he leaves behind an incredibly robust and diversified business. Between Berkshire Hathaway's several dozen subsidiaries across an array of sectors and industries, its impressive stock portfolio, and its massive cash stockpile, it's positioned to handle severe economic shocks better than most companies.

Not all of the company's businesses will be affected equally by macro turbulence. Some might thrive as others suffer -- it will average out, at least somewhat. Berkshire Hathaway might not come out of a recession (if one is on the way) completely unscathed, but it will come out on solid footing. And regarding the pending change in management, Buffett did not pick Abel out of a hat. As a top executive of the conglomerate, Abel has soaked up Buffett's investment philosophy, and he has been capably overseeing a large portion of the company for years.