3 Mighty American Companies to Buy as Tariff Uncertainty Lingers

Despite ongoing trade tensions, certain U.S. companies are positioned to thrive, including Costco, Uber, and Berkshire Hathaway. Costco's resilience stems from its primarily American suppliers and ability to negotiate prices, while Uber benefits from the increasing trend of Americans using ride-sharing services. Berkshire Hathaway's diverse portfolio of privately held, domestically focused companies, such as Dairy Queen and GEICO, provides a buffer against tariff impacts, complementing its publicly traded stock holdings.

Analysis

Amidst ongoing US-China trade tensions, exemplified by a temporary 90-day pause in tariff hikes, certain domestically-oriented US companies exhibit characteristics suggesting resilience and potential for outperformance. Costco Wholesale (COST) leverages its significant US presence, with over 600 of its nearly 900 stores located domestically and approximately two-thirds of its merchandise sourced from American suppliers, mitigating direct tariff impacts. The company anticipates revenue growth just under 8%, supported by a strong membership base of 78.4 million paid members boasting a renewal rate exceeding 90%, and CEO Ron Vachris highlighted its sourcing flexibility and negotiating power with suppliers during the fiscal Q2 earnings call. Uber Technologies (UBER), while global, derives substantial strength from its dominant 75% market share in the US ride-hailing industry, a sector benefiting from a secular decline in personal car ownership, particularly among younger demographics—less than 40% of US teens now hold driver's licenses, down from two-thirds 30 years prior, and 44% of individuals under 35 would consider forgoing vehicle ownership. Uber's service-based model, projected for mid-teens top-line growth, is largely insulated from tariffs on physical goods. Berkshire Hathaway (BRK.A, BRK.B) presents a defensive posture through its dual structure: a portfolio of publicly traded equities, including significant US holdings, and a substantial collection of wholly-owned private American companies like GEICO and BNSF, which account for approximately one-third of its market capitalization and operate largely independently of international trade fluctuations. This is complemented by a robust $348 billion cash hoard. The positive sentiment scores for these entities (COST: 0.7, UBER: 0.7, BRK.A/B: 0.8) underscore their perceived ability to navigate the current trade climate.

Key Decisions for Investors

• Investors could consider allocating capital towards companies with strong domestic revenue streams and supply chains, such as Costco, Uber, and Berkshire Hathaway, to mitigate risks associated with international trade disputes.
• Monitor evolving consumer trends, like the shift towards service-based economies and declining car ownership, which provide secular tailwinds for companies like Uber, irrespective of tariff policies.
• For those seeking long-term, defensive investments, Berkshire Hathaway's blend of publicly traded US equities, privately held domestic businesses, and substantial cash reserves may offer a buffer against tariff-induced market volatility while retaining growth potential.