In a recent publication, we showcased our list of the 10 Best Low Volatility Stocks to Buy Now. This article aims to delve deeper into how Berkshire Hathaway Inc. (NYSE: BRK-B) stacks up against these top-performing low volatility stocks.

The US stock market has experienced a turbulent first quarter of 2025, characterized by heightened volatility and negative returns across the major indices. This turbulence can be attributed to various factors, including the unpredictable performance of technology stocks, fluctuating economic data, and escalating trade tensions that have unsettled investors.

As the year kicked off, the financial landscape was shaken by the introduction of an innovative Artificial Intelligence (AI) software developed in China, known as DeepSeek. This cutting-edge AI technology not only rivaled prominent US competitors like ChatGPT but was also deemed revolutionary in its capabilities, triggering significant reactions across global markets. According to a report by Reuters, there was a massive sell-off by global investors in US indexes, with one major technology company suffering a staggering loss of $593 million within a single trading day.

In response to the upheaval caused by DeepSeek, the US government swiftly implemented a series of policies designed to bolster its own tech firms. This included strategies to reduce the influence of DeepSeek in the American market, such as imposing tariffs on trade with Chinese companies.

By February 2025, the first round of tariffs was enacted, specifically targeting China with the aim of mitigating the impact DeepSeek could have on the US technology sector. March saw President Trump announce an aggressive tariff rate of 54% on Chinese imports, a move quickly reciprocated by China, which imposed a 34% tariff on various US goods and services. According to CNBC's reporting, by April 11, 2025, the total tariffs levied on Chinese imports by the United States had escalated to a staggering 145%, although certain sectors, notably Technology, Automobiles, and Smartphones, were granted exemptions. In turn, China retaliated with tariffs as high as 125% on American goods and services.

The ongoing economic turmoil has exacerbated uncertainties surrounding interest rates, further contributing to market volatility. In light of the fluctuating economic conditions, the Federal Reserve announced it would maintain interest rates within the range of 4.25% to 4.50%. At a recent dinner hosted by the Economic Club of Chicago, Federal Reserve Chairman Jerome Powell articulated the Fed's cautious approach, stating, For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.

Currently, the US economy is perceived to be entering a phase of continuous stagflation, a situation characterized by persistent inflation coupled with low growth and high unemployment rates. One key indicator that the Federal Reserve monitors to gauge market conditions is the Cboe Volatility Index (VIX). This index serves as a barometer for the level of market fear and uncertainty. A VIX reading of 20 or higher indicates above-normal expectations for price fluctuations. As of now, the VIX is reported at a concerning 32.64%, reflecting the heightened market unease.