To say that the stock market has returned from its March past will be massive with a vengeance. As of July 28, the S&P 500 was flat for the year and was up 47% at the end of March, where it ended at the end of March – a notable rebound in a few months.
However, this is not to say that we are out of the woods right now. The COVID-19 epidemic is still progressing at alarming levels, and things may go bad before they get better. To name a few hypothetical scenarios, state governments in hard-hit regions may choose to shut down their economies to slow the spread of the virus and unemployment may remain in the double digits in 2021. Economic activities have been largely fueled by government support, and Congress may have trouble agreeing on any further stimulus. And the market is assuming that a vaccine will be ready to go by the end of 2020 or early next year – while it is certainly a possibility, it is not a given.
The point is that the market can certainly crash again before the epidemic ends. And if it does, then the owner of the two shares Walt disney (NYSE: District) And Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Here’s how these businesses are well positioned to make it through any difficult times and if the economy recovers quickly, it is also set to succeed.
A stock for recovery And Time at home
Disney has clearly been a victim of the COVID-19 epidemic in many ways. Its cash-cow theme parks closed as the epidemic worsened, and although Walt Disney World has reopened, congestion is limited and is unlikely to bring it anywhere near its specific level of revenue. In addition, Disney’s cruise line remains closed, and there is no way to ensure that movie theaters will actually reopen on a wider scale.
Having said that, Disney’s brands are powerful enough to make it through tough times. When the epidemic is over, the demand for theme parks will be as strong as ever. Many of Disney’s film franchises are likely to bring the box office once again. And at some point, Disney’s cruise ship will depart again.
Meanwhile, the epidemic has given Disney’s youth streaming business a setback. The company had set a target (seemingly ambitious) of 60–90 million customers by 2024. As of May 4 this year, there were 54.5 million. It is entirely possible that Disney would have reached its 2024 target this year.
In short, Disney has enough liquidity to make it through tough times, and in the meantime is doing a major job of building a huge stream of recurring revenue. About 20% less than at the beginning of the year, Disney is a stock that is not in any way how the rest of the epidemic plays out.
Buffett is finally putting money to work
Investors have been disappointed by Berkshire Hathaway CEO Warren Buffett with declining investment action over the years, as the company’s cash hoard rose to $ 137 billion by the end of the third quarter. And it makes sense – that’s more than one-quarter of Berkshire’s market capitalization that was sitting around generating almost no returns.
However, this has changed recently. Recent acquisition of Berkshire Of Dominion (NYSE: D) Purchase of natural gas assets and another $ 1.2 billion Bank of america (NYSE: BAC) Stocks show that Buffett and his team may eventually have to see the lucrative opportunities they have been waiting for.
If the market crashes again, it could open the door to even more investment opportunities. And with a collection of mainly recession-resistant businesses such as GEICO and many of its utility operations, Berkshire is well positioned to remain profitable no matter the stock market or economy.
Two excellent long term investments
To sum it up, Disney and Berkshire are two stocks that work well during good times and can allow you to sleep well at night to know if the stock market crashes again , So they are relatively safe stock which should make it through turbulence a piece.