With the market seemingly declining every day and Standard & Poor’s 500 The index recently hit new lows for the year, and many investors are wondering if they will jump in now or wait for the lower lows. But timing the market to wait for a bottom is a foolish task, and there is a proven way to hedge your bets as well.
Spreading investments over time can ensure that not all of your money goes in when it turns out to be a bad time. This also means that you will invest in the event the market rushes quickly, which means that you will not miss out on what could be a quick market recovery. The best part is putting those investments into high-quality companies that have withstood a lot of bad economic environments. Here are five good investments in any market.
Victory over inflation
high volume retailer costco (cost -2.97%) The winner was proven by many economic cycles. Costco has a stable business with annual revenue growing steadily by 433% since 2002. Its total inventory returns have quadrupled from what it was in S&P 500 . Index Over the past five years and more than doubled over 10 years. Even with inflation gripping many countries globally, Costco just reported a 15.2% year-over-year increase in the fourth quarter of fiscal year 2022 ending August 8.
This jump may not have come despite the inflationary environment, but perhaps because of it. People who are looking to save money as they can continue to increase their Costco membership subscriptions. Membership fee revenue is up 9% for the full fiscal year compared to fiscal 2021. The stock is down 15% since mid-August, accounting for most of its decline in 2022. This gives investors ample opportunity to step into this proven winner as it continues to operate in all cylinders. .
Just follow Warren Buffett
Investors always love to see what Famous Successful Investors With their money, no one is more transparent in investing than Warren Buffett. Buffett was the owner of coca cola (Ko -0.95%) For decades without selling, he’s also been buying one more stock than any other in the past several years. This stock is his own company, Berkshire Hathaway (BRK.A -2.47%) (BRK.B -2.63%).
Buffett owns more than 9% of Coca-Cola, with the shares recently valued at nearly $22 billion. it’s a One of his stocks is “forever”. why not? The iconic beverage maker has a global presence, a growing portfolio of products, and an ever-increasing dividend yield which recently generated around 3.2%.
That return is as high as it has been all year, with inventory down nearly 15% in the past six months. Coca-Cola reported that net operating income jumped 14% year-on-year in the first half of 2022. Investors are concerned that economic problems around the world could hurt business, but this will be a short-term problem if it starts to pay off. Investors get a good chance to join Buffett in this long time.
Buffett was buying more of his stock than any other. Berkshire spent more than $51 billion buying back about 9% of its shares in 2020 and 2021. Buffett said price to book value is the metric he uses to gauge when share buybacks make sense. This scale is at one of the lowest levels for this year, which is It wouldn’t be surprising Let’s see Buffett buys back more shares himself when the company next reports its quarterly update.
Consumers have not disappeared
People may visit the business of these companies for very different reasons, but Home Depot (HD -2.09%) And the Walt Disney (DIS -2.88%) They both have loyal followers that have helped make both stocks long-term winners. Each has easily beat the total returns, including dividends, from the S&P 500 over the past 20 years.
Home Depot has spent years investing in its business to help ensure its success in different types of markets. It announced a multi-year investment strategy called One Home Depot in 2017. The company has increased its annual revenue by 50% since that time, to more than $150 billion in the 2021 fiscal year ending Jan. 30, 2022. Even as the housing sector slows, management expects an increase This number is back in fiscal year 2022.
Home Depot’s investments have grown the residential consumer and professional business. This has put it in a position to navigate the growing or declining housing market, as consumers focus on upkeep of existing homes. With inventory down more than 30% so far, investors are getting a chance to become more than just Home Depot customers.
Meanwhile, Disney’s stock is similarly down 37% this year. Although the streaming business is not yet profitable, Disney parks, experiences, and products nearly doubled revenue year-over-year during the last nine-month reporting period ending July 2, 2022. Revenue from the parks segment was also up 9% compared to the same nine-month period. The months leading up to the pandemic in 2019. Disney is another popular brand that stock investors should be happy to buy and let go of for years or decades to come.
Howard Smith He has positions in Berkshire Hathaway (B shares), Home Depot and Walt Disney. Motley Fool has positions in Berkshire Hathaway (B stock), Costco Wholesale, Home Depot and Walt Disney. Motley Fool recommends the following options: January 2023 long calls of $200 on Berkshire Hathaway (B stock), January 2024 long calls of $145 on Walt Disney, January 2024 long calls of $47.50 on Coca-Cola, and puts of $200 Jan 2023 short calls on Berkshire Hathaway (B stock), January 2023 short $265 calls on Berkshire Hathaway (B stock), and January 2024 short $155 calls on Walt Disney. Motley Fool has a profile Disclosure Policy.