Cash, Code, and Compounders: Barry Schwartz’s June Juice
Barry Schwartz reveals why he's doubling down on quality stocks like Apple, Berkshire Hathaway, and Constellation Software—despite market volatility and AI uncertainty.
Barry Schwartz, president and chief investment officer at Baskin Wealth Management, isn’t rattled by the headlines. Despite a volatile spring and lingering trade tensions, Schwartz remains bullish on quality North American large-cap stocks—particularly those that continue to deliver innovation, resilience, and compounding earnings power. In his June 3 appearance on BNN Bloomberg, he laid out three picks that embody this philosophy: Apple, Berkshire Hathaway, and Constellation Software.
Weathering the Market Storm
After enduring a tough April, the markets made a convincing rebound in May, shrugging off geopolitical jitters and tariff threats that once loomed large. Schwartz sees the recent volatility not as a cause for concern but an opportunity to lean into value—particularly in U.S. equities, which have underperformed in early 2025 but remain home to many of the world’s highest-quality businesses.
While global valuations look tempting, Schwartz argues that no country has the ecosystem or infrastructure to churn out companies like the United States. He expects the U.S. Federal Reserve to begin rate cuts in earnest later this year, a move that could ignite another leg higher in the equity markets. And behind that rally? Artificial intelligence. Schwartz is betting big on AI becoming the next major driver of U.S. economic and corporate growth.
Apple: Still Core to the Consumer
Among the most contrarian of Schwartz’s picks is Apple—a stock that’s taken hits this year amid rising tariffs, antitrust lawsuits, and a sluggish rollout of its AI initiatives under the Apple Intelligence brand. But Schwartz isn’t fazed. In fact, he sees the pessimism as an opening.
Consumer loyalty to Apple remains unmatched, especially among younger demographics. Nearly nine in ten teens still prefer iPhones, and the company’s hardware and software remain tightly integrated. Schwartz views Apple’s vertical integration, including its proprietary silicon chips, as a major long-term advantage in the AI race. While rivals grapple with fragmentation and dependency on third-party suppliers, Apple controls its entire stack.
He’s also confident in Apple’s ability to manage the tariff challenge. CEO Tim Cook, with his deep roots in supply chain strategy, has weathered such storms before and has the tools to adapt quickly. At a valuation of 27 times earnings and minimal capex obligations compared to peers, Apple offers what Schwartz considers rare value for a mega-cap tech name.
Berkshire Hathaway: Strong Without Buffett
Warren Buffett’s name may be synonymous with Berkshire Hathaway, but Schwartz is focused on the company’s fundamentals beyond its legendary CEO. With a fortress-like balance sheet, a defensive portfolio, and over $350 billion in cash, Berkshire is primed for resilience and opportunism—whether or not Buffett is at the helm.
Greg Abel, Buffett’s designated successor, is already shifting focus toward operational efficiency and organic growth. That could translate into more investments in Canada and a tighter emphasis on performance from its diverse holdings. The stock is trading at a modest 1.7 times book value, which Schwartz sees as an attractive entry point for a company with rock-solid fundamentals.
With exposure to inflation-protected sectors like railroads, utilities, and insurance—and the capital to act swiftly in downturns—Berkshire remains a cornerstone defensive play in Schwartz’s strategy.
Constellation Software: A Compounding Machine
The final name in Schwartz’s top picks is Constellation Software, a Canadian tech giant that flies under the radar of many investors. Schwartz calls it one of the most unique companies on his radar, thanks to its disciplined capital allocation, employee-aligned management, and relentless focus on return on investment.
Constellation has expanded far beyond its traditional vertical market software (VMS) base, venturing into payments, data, and new international geographies. What’s even more impressive is its evolving corporate structure. The company is conducting strategic spinoffs to incentivize employees and streamline acquisitions, including a move to rebrand certain verticals—like the supply chain segment now operating under “Omegro.”
The stock has delivered impressive returns purely on the back of earnings growth, not multiple expansion. Trading at 35 times earnings, Schwartz believes the company is still reasonably priced given its compounding trajectory, management discipline, and strategic evolution.
The Bottom Line
For Schwartz, quality is king. Whether it's Apple navigating supply chain snarls and antitrust headwinds, Berkshire Hathaway preparing for life beyond Buffett, or Constellation Software reinventing its acquisition strategy, all three picks share a key theme: adaptability backed by execution.
He sees the short-term noise—tariffs, lawsuits, inflation—as just that: noise. And he’s positioning accordingly, adding to strong U.S. names during pullbacks and doubling down on innovation-led businesses. As the AI revolution accelerates and the Fed pivots toward a more accommodative stance, Schwartz is betting that the best of the market isn’t behind us—it’s just getting started.