The phrase, “A rising tide lifts all boats,” suggests that when the market rises, all investments generally benefit. Conversely, when the market falls, investments are likely to decline as well. Nevertheless, certain exceptions exist. For instance, a particularly weak investment may sink regardless of market conditions. Surprisingly, there are scenarios where an investment can prosper during a market downturn, especially in the context of stocks.
Warren Buffett has a reputation for spotting stocks that thrive when the broader market is struggling. The S&P 500 has dropped roughly 8% from its peak earlier this year, yet Buffett has several stocks that are performing impressively in 2025 as the market heads downward.
So, which of Buffett’s stocks are currently outperforming the market? A notable performer is Berkshire Hathaway (NYSE: BRK.A, NYSE: BRK.B), where shares have surged almost 14% year-to-date.
Yet, the standout performer in Buffett’s portfolio is BYD (OTC: BYDD.F, OTC: BYDDY), a Chinese electric vehicle manufacturer. Its stock has soared 47% in 2025, a point of pride that would likely please Buffett’s long-time business associate, Charlie Munger, who advocated for Berkshire’s investment in BYD back in 2008 before his passing in late 2023.
Other non-U.S. investments from Buffett’s portfolio are also thriving. Shares of the digital banking leader Nu Holdings (NYSE: NU) have risen by 13%, while the stock of British financial services firm Aon (NYSE: AON) has climbed 11%. Additionally, two technology-related holdings within Berkshire’s portfolio have shown substantial gains: T-Mobile US (NASDAQ: TMUS) is up around 16%, and VeriSign (NASDAQ: VRSN) has seen a 15% increase.
Coca-Cola (NYSE: KO), one of Buffett’s long-time favorites, has risen by 11% this year, adding to its reputation as a dependable choice for income-focused investors due to its consistency in dividends.
Amid market volatility, investors are likely perceiving several of these Buffett stocks as safe havens, explaining their strong performance amidst downward trends. Berkshire Hathaway itself has turned into a robust option during uncertain times, allowing Buffett to maintain a cash reserve exceeding $334 billion, which can be strategically deployed if market declines continue.
