The BEST Recession Proof Stocks

The BEST Recession Proof Stocks

Opinions

KO (stock, NYSE)

The speaker argues against it being truly recession-proof because its products are discretionary and consumption-based, meaning consumers can easily reduce purchases or trade down.

UBER (stock, NYSE)

Presented as an honorable mention, arguing it is more resilient than perceived. Its mobility service is becoming essential transportation, and a recession could increase the supply of drivers, improving the platform's efficiency.

NFLX (stock, NASDAQ)

Considered a resilient honorable mention because it's a cheap and central form of entertainment. The ad-supported tier provides a way for consumers to trade down without leaving the service, potentially increasing ad revenue during a recession.

COST (stock, NASDAQ)

The business is considered highly recession-proof because the majority of its profit comes from sticky, non-discretionary membership fees, not from the sale of goods, making its income very stable.

WM (stock, NYSE)

The waste management business is inherently non-cyclical as people and businesses will 'forever produce waste' regardless of the economic climate. A large portion of revenue is recurring from collection services.

PG (stock, NYSE)

The company sells non-discretionary consumer staples that people need regardless of the economy. It owns brands at various price points, allowing it to capture value even when consumers trade down.

GE (stock, NYSE)

The aerospace division is highly resilient due to long-term, subscription-like service contracts for jet engines. This recurring revenue is based on flight hours and is non-discretionary for airlines, independent of new plane sales.

Topics

Market Conditions and Recession Risk

Charitable Initiative for the Homeless

Criteria for Selecting Recession-Proof Stocks