Buffett's Crash Insurance: 3 Stocks He Won't Abandon
Warren Buffett's portfolio can offer clues about how to weather a potential market crash. If such an event occurs, investors may want to hold onto Berkshire Hathaway's stakes in Coca-Cola, American Express, and Chevron.
Coca-Cola is the longest-held stock in Berkshire Hathaway's portfolio, with 38 years of ownership under Buffett's leadership. The beverage giant has a resilient business model and has continued to thrive through various market downturns, including the dot-com bubble burst, the financial crisis of 2008, and the COVID-19 pandemic.
American Express is another stalwart in Berkshire Hathaway's portfolio, with Buffett having initiated a position in the financial services leader in 1991. The company targets affluent cardholders who have historically maintained their spending even during recessions, making it relatively immune to market fluctuations.
Chevron, which joined Berkshire Hathaway's portfolio in late 2020, has seen its stock rise almost 140% since then and has outperformed the broader market this year. Higher oil prices driven by the Iran war could be a catalyst for a potential market crash, but Chevron is well-positioned to continue rewarding investors with its juicy dividends.