What do you do when the market feels like it’s headed for a tumble, but you don’t want to sell out of positions that still have a lot of room to grow long-term? You could just keep any new money in cash so you’re ready to invest when the time comes. But we all know it’s foolish to try and time the market. So, it may make more sense to invest in a few companies that make money no matter which way the market sways. Here’s a few defensive stocks to consider with stable earnings and less volatility:
Berkshire Hathaway (BRK-B)
Take a look at the companies BRK owns. It’s a select group that weathers market storms better than most.
Apple
Bank of America
Coca-Cola
American Express
Kraft Heinz
Moodys
US Bankcorp
General Motors
Visa
Amazon
Mastercard
If you’re worried about putting more money into Tesla or Snowflake, why not sock a little away in BRK-B shares ($225ish) and sleep better at night?
Bank of Hawaii (BOH)
It’s a well-run bank, with less competition on the islands, trading for a P/E of 18. They won’t go out of business and the yield is 3.44%. We could all use a little more yield in our lives.
The Goldman Sachs Group (GS)
OK, it may not be the heady days of Michael Lewis but at $242/share and 13x forward earnings with a yield of 2.1%, it’s a pretty safe bet against any major tech-inspired sell off.n as
Hawaiian Holdings (HA) and Southwest Airlines (LUV)
As soon as the vaccine is widely distributed, people are going to travel like they’ve never traveled before. Not business flyers, which favors the bigger players American and United. Individuals like you and me are going 33I’ve heard friends say they will get on an airline and go somewhere they have no interest in visiting as long as the flights are cheap and the palm trees are real.
Walt Disney (DIS)
The Mandalorian is just the first of many Star Wars shows the company will feature in the coming years. And sooner or later those theme parks are going to re-open.
The Boston Beer Company (SAM)
In good times and bad, people like to drink beer. This company has been one of the previous decade’s best performers and that trend should continue. Cheers.
Waste Management (WM)
Trash never goes out of style. Pandemic or no pandemic, someone still has to pick up the trash and take it somewhere. This is about the least sexiest stock on the planet but the share price isn’t moving a ton in either direction. It’s about as safe a stock as you can own, and the appreciation should still best an average bond return.
Note: I’ve always wondered whether my wife would still want to do it if I spent my day around a bunch of trash. I’ve read that the smell gets into your skin. On the plus side, if you don’t feel like having sex with your spouse on a random Wednesday, I guess you could spend a little extra time at the dump and come home extra pungent before dinner.
New York Times (NYT)
The most well-respected newspaper in the country has made a seamless transition to the digital world and is one of the few media companies whose value is growing at a steady clip.
Oxford Industries (OXM)
Not exactly a household name but they make clothes for a variety of brands and they do it quite well. My uncle bought me 4 shares of this company when I was 12. I have no idea where the certificate is so I can’t sell them if I wanted to. But in some 38 years, they’ve never missed a dividend payment. Perfect for an overvalued market.
Accenture (CAN)
Businesses of all sizes need help with everything from adapting to the cloud to maximizing casg flow and Accenture is one of the best helpers in the world.
