Larry Fink Signals Rising Economic Anxiety in Annual Investor Letter

Larry Fink, CEO of BlackRock, may not have the same recognition as Warren Buffett, yet his insights into the global economy are crucial. BlackRock stands as the world’s foremost asset manager, overseeing an impressive $11.55 trillion in assets as of the end of 2024. This portfolio includes exchange-traded funds (ETFs) under the iShares brand, investment management brands from Barclays and Merrill Lynch, and participation in various infrastructure ventures such as Global Infrastructure Partners.

In his recent annual letter to investors, Fink communicated the prevailing unease about the economy. He stated, “I hear it from nearly every client, nearly every leader, nearly every person I talk to: They’re more anxious about the economy than any time in recent memory.” He emphasized the critical role of capital markets and advocated for broader access to these markets along with investments in infrastructure, which he views as significant growth opportunities. Despite not offering specific stock advice, Fink’s observations coincide with declining consumer confidence, an ongoing correction in stock prices, and warnings from some economists about a potential recession.

If you’re among those seeking stability in these uncertain times, here are three stocks that could bolster your portfolio through a turbulent market.

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1. AutoZone: A Resilient Investment Choice

For those looking for a recession-resilient investment, AutoZone (NYSE: AZO) presents a formidable option. The retailer has a stellar track record during downturns, consistently outperforming the market. It has shown strong gains during past recessions, including the dot-com bust, the global financial crisis, and the 2022 bear market. This year, the stock has risen further.

AutoZone thrives in a countercyclical industry. Economic challenges lead consumers to postpone buying new vehicles, increasing demand for aftermarket auto parts. Additionally, the recent tariffs on foreign car imports have positively impacted the auto parts sector. The company’s management has focused on the professional channel, ensuring ample inventory and swift deliveries to repair shops. With approximately 6,500 locations in the U.S. and over 7,000 globally, AutoZone has a robust distribution network. The company has also prioritized stock buybacks, enhancing its earnings per share. Currently, the stock has gained about 380% over the past five years.

2. Berkshire Hathaway: A Strong Performer

Berkshire Hathaway (NYSE: BRK.A), (NYSE: BRK.B) holds a distinguished record in navigating bear markets over the past sixty years. Warren Buffett, synonymous with the company, is renowned as a leading value investor. Berkshire often capitalizes on downturns, as demonstrated by its strategic investments during past crises, such as the one in Bank of America following the last recession.

There are indications that Buffett is preparing for potential market corrections by accumulating cash and trimming holdings in major stocks like Apple and Bank of America. This conservative approach may provide opportunities for Berkshire to acquire undervalued companies as market conditions evolve.

3. Realty Income: Stable Dividends and Reliable Business Model

Realty Income (NYSE: O) represents another solid investment choice, particularly for those seeking stability. As a real estate investment trust (REIT) focusing on triple-net leases, Realty Income tenants cover maintenance, taxes, and insurance, generally including established businesses like 7-Eleven and Walgreens.

This REIT has consistently paid dividends, with over 100 consecutive quarters of increases and a monthly payout structure that appeals to income-focused investors. As of Thursday, Realty Income offers a dividend yield of 5.6%. Moreover, should the economic landscape slow, lower interest rates can benefit Realty Income by simplifying borrowings for acquisitions and refinancing existing debt, while enhancing the appeal of dividend stocks relative to bonds. The company’s sound business model and diverse property portfolio position it well against future economic challenges.

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*Stock Advisor returns as of April 1, 2025

Bank of America is an advertising partner of Motley Fool Money. Jeremy Bowman has positions in Bank of America and Realty Income. The Motley Fool also holds shares in and recommends Apple, Bank of America, Berkshire Hathaway, and Realty Income. The Motley Fool’s disclosure policy is available for review.

The views and opinions expressed herein are those of the author and do not necessarily represent the views of Nasdaq, Inc.