KEY POINTS

  • Berkshire’s many companies help to buffer against an economic downturn.
  • Investors may go on the offensive by purchasing shares in CrowdStrike.
  • Healthcare is always a reliable industry, and UnitedHealth provides security and consistency.

If the economy is in a recession, like most Americans think, then recession-friendly stocks are the way to invest. There is currently a debate among economists as to whether the American economy is in a recession. Some argue that it is due to two consecutive quarters of negative GDP growth. Others claim that this cannot be the case because the unemployment rate remains low. It can be challenging to understand such complex economic concepts.

Here’s something that isn’t complex: Most Americans think we’re in one right now, and according to a recent poll, 58% say so. So, where should investors put their money? Here is a list of 3 recession-friendly stocks that we believe will do well, despite the current economic conditions.

Berkshire Hathaway

Warren Buffett is 92 years old today and has seen many downturns in his lifetime. And through each recession, one thing has remained consistent: Berkshire Hathaway (NYSE:BRK.B) emerged on the other side just fine.

Consider if you had purchased $10,000 worth of Berkshire Hathaway’s lower-priced Class B shares in August 2008, just before the stock market bottomed out during the financial crisis. Those shares are now worth more than $37,000.

In simpler terms, Berkshire’s size and wide range of investments will safeguard it from any future economic downturn. For example, the company has interests in essential industries like insurance, utilities, and pharmaceutics. As seen in its most recent quarterly report, it is also sitting on a large pile of cash totaling over $105 billion.

If you’re looking to invest in some of America’s most iconic companies, like Apple (NASDAQ:AAPL)Coca-Cola (NYSE:KO), and Chevron (NYSE:CVX), and diversify your risk, then investing in Berkshire is a great option. You’ll be able to profit alongside one of the greatest financial minds of all time!

CrowdStrike

Two ways to deal with a recession are to ride it out or power through it. Berkshire Hathaway is the way to go if you want to ride it out. But if you want to power through, CrowdStrike Holdings (NASDAQ:CRWD) is your best bet.

CrowdStrike is experiencing skyrocketing growth thanks to the sharp increase in cybercrime. This growth has led to a massive demand for its cybersecurity products, resulting in 61% year-over-year revenue growth in its most recent quarter.

Through its Falcon software and Threat Graph artificial intelligence (AI), CrowdStrike is constantly scouring for potential threats among the trillions of events that occur every week. This combination allows the company to efficiently identify which events represent actual threats and which do not. Its close to 18,000 customers appear convinced.

If, when picking recession-friendly stocks, you are looking to play offense, CrowdStrike is a firm to invest in.

UnitedHealth

Healthcare is an excellent sector to invest in during an economic downturn because people will still need medical care even when cutting back on other expenses.

UnitedHealth Group (NYSE:UNH) is one of the largest and most powerful healthcare businesses. The company has more than 26 million insured patients and generated a staggering $306 billion in revenue during the last year and $23 billion in operating profit.

Despite its size, UnitedHealth is still expanding at a healthy rate. In the most recent quarter, revenue increased 12.6%, as the firm outperformed both the top and bottom lines and raised full-year guidance.

So far this year, the stock has gone up about 7%. That might not seem like much, but it’s doing pretty well when you compare it to other stocks that are going down (or have already lost value). And on top of that, they pay a 1.2% dividend yield. So UnitedHealth could be a good option if you’re looking for safe recession-friendly stocks.

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