Will Warren Buffett's Berkshire Hathaway outperform US market in next 5 years?

Those who took part in the survey believed that defensive stocks will fare better than technology names in the months ahead, a judgement that would augur well for Berkshire given that Buffett is expected to avoid the latter category due to recent lofty valuations.

Buffett stated that investors are looking for ways to beat a looming recession as growth slows in the US economy, and are turning to defensive stocks, value investing and the master of picking through rough patches.

US economic growth slowed considerably in the first quarter of 2023, according to official figures released recently, adding 1.1 percent on an annualised basis. This was down from 2.6 per cent in the last three months of last year and marked a greater drop-off than economists had anticipated.

The billionaire also assured investors that Berkshire Hathaway will be fine when he's no longer around to lead the conglomerate. He said that after Vice Chairman Greg Abel takes over, Berkshire will still follow the same model of allowing its subsidiaries to largely run themselves while looking for other companies to buy with the substantial cash reserves it keeps on hand at all times.

“The problem for our board of directors is the day I’m not around and Greg’s running it, I am not giving him some envelope that tells him what to do next," Buffett added.

On a year-to-date basis, shares of Berkshire have gained 7 percent.

Meanwhile, the US Federal Reserve is on track to raise its benchmark interest rate for the 10th time on May 3, the latest step in its year-long effort to tame inflation with the fastest pace of hikes in four decades.

Economists believe that Jerome Powell will likely hint that the Fed is edging closer to a long-awaited pause in its rate increases.