To repurpose an old television commercial: When Warren Buffett talks, people listen. Buffett is one of the world's richest billionaires and most successful investors. Much of the investment community follows his every move, looking to bring some of the Buffett magic into their own portfolios.

Buffett's moves are particularly interesting as the U.S. faces inflation plus fears of recession. Investors generally want safety in uncertain times. And Buffett, who's seen many flavors of recession, could shed light on where to find that safety.

But Buffett doesn't buy and sell stocks based on what's happening with the economy. He's an all-weather investor -- choosing stocks that can survive all economic climates. That may be why he has 10% of Berkshire Hathaway's portfolio invested in consumer staples, a sector that's known for being recession-resistant.

Consumer staples defined

Consumer staples are essential food, beverage, household, and personal products. Examples are soda, eggs, milk, toothpaste, and detergents.

Consumer staples companies include retailers and manufacturers of these products. On the retail side, you have Dollar General (NYSE: DG), Walmart (NYSE: WMT), Costco (NASDAQ: COST), and their competitors. Consumer staples manufacturers include Procter & Gamble (NYSE: PG), Coca-Cola (NYSE: KO), and Kimberly Clark (NYSE: KMB).

Why consumer staples stocks are recession-resistant

A look at your own buying habits can demonstrate why consumer staples stocks don't tank in recessions. With inflation running hot, where have you cut back to make ends meet? You're probably spending less on things like electronics and designer clothes. You may have even canceled a streaming service or two.

But you are still buying toilet paper, deodorant, and bread, even as the prices on these goods rise. On top of that, you may have shifted some shopping to discount retailers like Walmart, in lieu of your more expensive local market.

Here's what it comes down to. People keep buying their staples. Demand for these essential goods doesn't drop off when the economy goes sideways.

Buffett's consumer staples stocks

Berkshire Hathaway owns five consumer staples stocks:

1. Coca-Cola
2. Kraft Heinz (NASDAQ: KHC)
3. Kroger (NYSE: KR)
4. Mondelez International (NASDAQ: MDLZ)
5. Procter & Gamble

Where to find consumer staples stocks for your portfolio

Buffett's consumer staples portfolio is interesting, but you don't want to run out and copy it. Even Buffett himself would tell you: A better approach is to invest in what you know -- specifically, the products, brands, and retailers that are essential to you.

This is easy to figure out, too. Look at your last grocery receipt. Cross off everything that's nonessential and see what's left. Or peek into your pantry and bathroom cabinets. Note the brands you buy repeatedly. It could be Colgate or Charmin, for example. If you see mostly generic goods, then where are you buying them?

You could also think back to the products that kept selling out during the Great Lockdown of 2020. (In my community, it was toilet paper, disinfectants, and chicken.) People stockpile the stuff they can't live without. And many of these staples are made or sold by public companies.

Spend a few minutes on this exercise, and it could reveal six or more recession-resistant stocks to consider for your own portfolio.

Recession defense, the Buffett way

Many investors use consumer staples stocks as a defensive strategy against recession. To follow Buffett's approach, though, you'd invest in defensive stocks you're willing to hold for decades. That's different from owning shares of Coke or Walmart temporarily because financial pundits are predicting recession.

In other words, play defense consistently. Manage to a risk level you can handle in all investing climates. Buffett has 10% exposure to consumer staples, for example, but you might prefer 5% or 15%. Whatever your number is, stick with it. That way, you won't be scrambling to adjust to every market shift. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Warren Buffett has 10% of Berkshire Hathaway's portfolio in this recession-resistant sector appeared first on The Motley Fool Australia.

Since it's Easter time, you've probably taken some time away from eating chocolate to visit the Motley Fool. I thought this might be a good opportunity to dive into the industry that is Easter chocolate. Investing doesn't have to take an Easter break, after all!

So let's dive right into the chocolate pile

Chocolate all round

So, according to a 2016 Roy Morgan survey (which is a few years old, but our chocolate habits probably don't change too much), Australians favourite chocolate brands include the following: Cadbury, Cherry Ripe, Kit Kat, Mars Bars, Snickers, Lindt, Ferrero Rocher, Freddo Frog, Crunchie, Boost, Flake, Twirl and Bounty.

Of these brands, Cherry Ripe, Freddo Frog, Crunchie, Boost, and Twirl are all owned by Cadbury. It may not come as a surprise that Cadbury dominates our local chocolate industry.

Cadbury itself is a subsidiary of the US-listed food giant Mondelez International Inc (NASDAQ: MDLZ), despite its British roots. Mondelez also owns the Toblerone and Oreo brands.

Mars Bars, Snickers, and Bounty are all owned by Mars, Incorporated. This company, also American, is one of the largest private companies in the world. So no Mars shares up for trading for us retail investors! Mars also owns the Wrigley's line of gum, as well as the Eukanuba and Pedigree brands of pet food.

Kit Kat is owned by the Swiss company Nestle SA (SWX: NESN), which is the largest food company in the world. Nestle also owns Allen's lolly range, as well as chocolates like Milky Bar, Aero, and Smarties.

Ferrero Rocher is owned by, well, Ferrero Group, who also owns Kinder Suprise, Nutella, and Raffaello. Ferrero is also a private company, but an Italian one.

And finally we have Lindt, or Chocoladefabriken Lindt & Sprüngli AG (SWX: LISN) if you want its full name. Lindt is also a publically traded Swiss company. Its famous products are arguably the Lindor balls and gold bunnies, which are a staple sight on supermarket shelves at Easter.

Foolish takeaway

Chocolate is a big business, especially at this time of year. As such, it's certainly interesting to see which companies dominate our Easter purchasing in Australia. No surprises to see the Swiss making their names felt. However, it's interesting to explore the origins of brands like Mars, Cadbury and Ferrero as well. Happy Easter!

The post The chocolate industry: An Easter breakdown of who owns what appeared first on The Motley Fool Australia.

The Supreme Court of Victoria ruled today Bega Cheese Ltd (ASX: BGA) is entitled to use the Bega trademark on products outside the scope of the Fonterra Shareholders' Fund (ASX: FSF) licence without the fund's consent.

The ruling means, in practical terms, that Bega may use the Bega trademark on its products such as peanut butter and Vegemite, while Fonterra's licence on the trademark will continue on natural and processed cheddar cheese, string cheese, and butter.

Bega's counterclaim, which alleged multiple breaches of the licence agreement by Fonterra, was dismissed.

Response by both parties

In a statement released to the ASX, Bega said it was "pleased that its right to use its brand on [peanut butter and Vegemite] has been confirmed by the court."

René Dedoncker, managing director of Fonterra Australia, gave the following statement to Motley Fool Australia in response.

"We're pleased with the decision that Fonterra will retain exclusive licence for the Bega cheese brand for cheese and butter. We will continue to invest in the Bega brand because we believe in it."

"Although we're disappointed with the decision on the trademark claim, we are confident that we can work together with Bega Cheese Limited to continue to grow the value of the brand."

"We will review the judgement in the coming days and consider our options."

Background to the case

In 2002, Bega Cheese and Fonterra came to an agreement for Fonterra to licence the Bega trademark until 2026 – including blocks and slices of cheese, and Stringers.

According to the ABC, the deal was going well until Bega Cheese announced in 2017 it was buying a suite of Kraft products from Mondelez International Inc (NASDAQ: MDLZ). Subsequently, the Australian dairy manufacturer replaced the Kraft logo on these products with its own Bega logo.

During initial proceedings, Fonterra alleged Bega were "diluting the distinctiveness of the [Bega] brand" and would cause "significant damage to the existing reputation of the Bega trademarks."

Fonterra and Bega share price snapshots

Bega Cheese hit a 52-week high yesterday and this momentum has carried on into today. At the time of writing, the Bega Cheese share price was up on yesterday by 9 cents to $6.24.

Fonterra's share price has also risen today, up by 4 cents to $4.67. This rise has come off the back of a narrowed earnings guidance.

It is not yet clear whether today's court ruling will have any impact on each company's share price.

The post Court rules on Bega Cheese (ASX:BGA) and Fonterra (ASX:FSF) trademark dispute appeared first on The Motley Fool Australia.