Investing in the stock market is not all about returns only. You must be ready to take the risks that come along with those returns as well. Though the market is known for its volatility, there are certain stocks that are not affected by these as they are quite strong in their fundamentals. There are many factors that make these companies stand strong irrespective of the turmoil that the stock market goes through. Strong financials, product innovations, huge brand name, etc., are some of the factors that have stood in good stead for these companies. You can invest in the following stocks if you want to protect your investments against the ups and downs of the stock market.
Beating competitors in style
One of the best stocks in the market currently is Apple (AAPL, Financial). It is not only the best stock in the technology sector, but the best stock in all other sectors as well. The main reason behind this is the accuracy and precision of Apple’s trademark product, iPhone. iPhone 6 contributed to more than 73% of Apple’s sales last year. This is probably the first ever case where a single product dominated a company’s revenues. The iPhones have dominated the smartphone industry as well. When compared to other technology companies, Apple started paying out dividends quite late; however in the last three years of dividends history, the company has announced reasonable increments and is aiming to add more value to investors this year in the form of share buybacks. With all this in mind, Apple is sure to have many blockbuster years in the future. Consistency of performance is one of the prime reasons, why Apple is a must-buy stock if you want a shield from the negative impact of market corrections. Share price trend of the company for the last few months is as follows:
Diverse businesses and extraordinary management
The next stock that we are going to discuss here does not pay you dividends. Are you surprised that a non-dividend stock is featuring in the list of stocks that provide you cover against market volatility? You don’t have to be, because we are talking about one of the biggest holding companies in the world, Berkshire Hathaway (BRK.A, Financial) (BRK.B, Financial). Headed by the investing legend, Warren Buffett, the company has its stakes in some of the best stocks in sectors like automobiles, insurance, real estate, retail, railways, consumer products, financial services, telecommunications and the like. The company reaps rich profits every year, and this is re-invested into the business for buying newer stakes in other companies. Buffett has got one of the best and most intelligent management teams at the helm of affairs of Berkshire, which is probably one of the main reasons for the company’s success today. Stock movement of Berkshire for the last few months is as follows:
It is just not about carbonated beverages
Coca-Cola (KO, Financial) is one of the stocks that wall street experts recommend for investing, because this stock has all the potential to provide investors the much-needed shield against the market blues. One factor in favour of the beverage giant is that it is a dividend aristocrat. For the last 52 years in a row, it has increased its dividends on a constant basis and today, it is one of the well-respected dividend stocks in the market. The next factor that works in favour of the company is its ability to adapt to market changes. Though its main product was carbonated beverages, Coca-Cola, explored other products when it realised that the demand for these beverages were coming down among health-conscious youngsters and adults. Hence it entered into partnership deals with the coffee brewing giant, Keurig Green Mountain (GMCR, Financial) and health drink major, Monster Beverage (MNST, Financial) in order to diversify its products. The results have been simply remarkable. Around 17 brands of Coca-Cola are billion-dollar brands and close to 20 produce annual sales in the range of $500 million. The share price movement of Coca-Cola in the last few months is seen here:
Conclusion
Every now and then, the stock market becomes favorable for certain sectors. However, it is quite rare to get stocks that are good for all seasons. The above mentioned 3 stocks fall in this category. These are stocks that you can buy and hold on to for a long period of time, because they have the capacity to overcome all sorts of market corrections and recessions. Your money is surely going to be safe in these!
