From Yahoo Finance: 2025-04-06 16:49:00

The US stock market faced a turbulent Q1 2025 with increased volatility and negative returns due to tariffs, economic data, and tech stock performance. DeepSeek AI, developed in China, rivaled US competitors, causing market shockwaves and a global investor sell-off.

US policies aimed to promote US tech firms and counter DeepSeek AI impact with tariffs. Federal Reserve’s decision to maintain interest rates between 4.25% and 4.50% added to market volatility, affecting sectors like banking with potential NPLs due to consistent rates.

President Trump announced global tariffs on Europe and China, sparking investor concerns. The US imposed 54% tariffs on Chinese goods, met with 34% “reciprocal” tariffs. This led to the biggest market drop since COVID-19, impacting global supply chains.

US economy faces “continuous stagflation” with high inflation, low growth, and high unemployment. Investors advised to seek stocks with steady revenue, dividend growth, low cyclicality, and strong cash flows. Systemically important sectors like energy, real estate, healthcare, finance, and tech are ideal.

Berkshire Hathaway Inc. (NYSE:BRK-B) stands out with diverse holdings in insurance, transportation, utilities, manufacturing, consumer goods, and more. Q4 2024 results showed $94.92 billion in revenue and $6.73 billion EPS, with $325 billion in cash reserves and buyback strategies.

Warren Buffet’s Berkshire Hathaway is a long-term investment powerhouse with a global presence. Buffet’s investment strategies attract millions of investors globally, driving growth through acquisitions and divestments. With an upside of 1.71%, BRK-B is a top beginner stock to watch, ranked 7th in the list.

Investors favor AI stocks for higher returns in a shorter timeframe compared to BRK-B. AI stocks show promise with a notable increase since 2025 start while popular AI stocks experience losses. Monitoring AI stocks for potential growth is key for investors.

For more stock insights, check out the 20 Best AI Stocks To Buy Now and 30 Best Stocks To Buy Now According To Billionaires. This article is originally published at Insider Monkey.

Read more: Is Berkshire Hathaway Inc. (BRK-B) Among the Best Beginner Stocks?