Worried Investors Should Buy Warren Buffett's Dividend Safety Stocks

"Consumer spending, while solid, is slowing, as tariffs are being imposed worldwide. The United States is finally responding to tariffs imposed upon it, and a host of additional factors are fanning the flames of another 2025 correction. Job gains have plummeted, as much of the data is perceived to be inaccurate. To be frank, it is high time that a correction similar to the one earlier this year comes in to help cleanse the market of the recklessness ignited by artificial intelligence almost three years ago."

"Long-time investors and Warren Buffett mavens are familiar with his quote, "His favorite holding for an S&P 500 stock is forever." So it's not surprising to report that for all the success and stature Berkshire Hathaway has in the investment world, five top companies make up almost 67% of the fund's total holdings. While much more concentrated than most portfolio managers would consider, the strategy has worked well for Berkshire Hathaway investors for years and is likely to continue doing so."

The 10-year Treasury yield fell from 4.75% in January to 4.09%, reflecting higher bond prices. Consumer spending remains solid but is slowing amid worldwide tariffs, and the United States has begun responding to tariffs imposed upon it. Multiple additional factors are increasing the risk of a 2025 market correction, and job gains have plummeted amid perceptions of inaccurate data. A correction similar to earlier this year is seen as necessary to cleanse market recklessness fueled by the artificial intelligence boom and speculative, revenue-free companies. Berkshire Hathaway concentrates almost 67% of its holdings in five companies, a strategy that has performed well historically. Given Buffett's cash and T-bill holdings and current market concerns, investors are advised to consider conservative Berkshire stocks, with four companies identified as very safe and rated Buy.

Read at 24/7 Wall St.