Will the market crash? You will want to own these 3 stocks

In 2024, the stock market experienced significant volatility, with sharp declines materializing in early August due to concerns about the US economy. A sharp rise in unemployment and high interest rates fueled fears of an impending recession, leading to a global market decline. The yen traded, leading to the biggest drop for Japan’s Nikkei 225 since Black Monday in 1987. And the VIX hit its highest level since the Great Recession, which worries many investors today.

Now, things have settled down a bit and stocks are starting to make moves back towards all-time highs as interest rate cut bets continue to rise. There are now about 100 basis points of cuts in the bond market for this year. And while most investors believe this is for a good reason – for the Federal Reserve to “coordinate” a soft landing, others believe the tapering could be more pronounced than many things and is happening for unfortunate reasons.

We will see. For now, the market is pricing in a rosy scenario with bits of gold. If not, investors looking to add defensive exposure to their holdings may want to consider the following three stocks.

Key points about this article:

• Concerns about a potential stock market crash are growing, with various macroeconomic indicators now flashing red.
• While there are signs we could get a soft landing, if we don’t, these are the stocks investors may want to consider in more turbulent times.
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Berkshire Hathaway (BRK-B)

Image of Warren Buffett leaning over and talking to someone out of frame

from Berkshire Hathaway (NYSE:BRK-B), the investment strategy presented by CEO Warren Buffett in his annual letters, emphasizes long-term investments in well-run businesses with lasting competitive advantages. Buffett believes in patience, stating that a great business can overcome the inevitable mediocre decisions. He also looks to invest at bargain prices, buying stocks when they fall below intrinsic value. Ensuring that he has a margin of safety is what allows the Oracle of Omaha to do what are often viewed as contrarian trades – buying when others are selling.

Warren Buffett’s stock-picking prowess isn’t the main reason to own Berkshire Hathaway for the long haul. Surprisingly, most of Berkshire’s value comes not from its stocks, but from privately held companies such as Duracell, Geico and BNSF. These holdings represent about two-thirds of the market capitalization of more than $900 billion.

These cash-generating businesses benefit from avoiding public market pressures. While Berkshire’s performance may occasionally lag behind the S&P 500, the company has consistently outperformed the market over the long term, making it a solid buy-and-hold investment focused on capital appreciation, not dividends.

Restaurant Brands (QSR)

A Firehouse Subs location showing the outdoor seating area

Restaurant brands (NYSE:QSR) recently announced a dividend of $0.58 per share payable on October 4, bringing its annual yield to 3.3%. It is larger than many of its peers and much larger than industry norms. The fast food giant has consistently and comfortably covered its dividend with earnings, distributing more than 75% of its free cash flow to shareholders. With cash flow and earnings growth far outstripping dividend increases, many in the market seem to believe this company’s upside potential could be much higher than market prices. ‘ the payment rate to fall to a much more sustainable value of 59%.

That would be great for dividend investors in this stock. But it’s also true that Restaurant Brands is a company with a significant growth path. The company continues to expand into foreign markets, many of which are growing at higher rates than here in North America. As the company gains market share overseas, organic same-store sales growth domestically should provide Restaurant Brands shareholders with increased capital appreciation over time.

From a valuation standpoint, there’s a lot to like as well. Current company P/E ratio of about 18 times it’s not only reasonable – I’d argue it’s very cheap. This is a company that has typically traded in the 30 times earnings range in the past. At a forward P/E ratio of about 15x, we’re talking double the value for double the defensive ability of the average stock (or better). This is a top option for those concerned about potential macro weakness on the horizon, in my books.

Walmart (WMT)

A Walmart supercenter parking lot

Walmart Inc. (NYSE:WMT) is a major US retailer with more than 10,500 stores. The company really needs no introduction. And Walmart’s financials speak for themselves, with the company reporting solid financial results in Q2 2025. Walmart generated 4.8% revenue growth and 7.2% adjusted operating income growth. The company also offered optimistic guidance for Q3 2025expecting net sales growth of 3.25% to 4.25% and operating income growth of 3.0% to 4.5%. For fiscal 2025, Walmart anticipates net sales growth of 3.75% to 4.75% and adjusted operating income growth of 6.5% to 8.0%, while continuing to gain share market and increase the number of transactions.

Walmart CEO Doug McMillon outlined four reasons for consumer preference: value, variety, convenience and trust. Walmart’s success in beating analysts’ expectations in Q2 is attributed to its use of AI to improve the shopping experience. With an improved outlook for the fiscal year, Walmart anticipates modest growth in sales and operating income, outperforming other consumer goods companies.

The company maintains a strong competitive advantage with its extensive store network and low price strategy. Improved online integration and supply chain enhancements drive growth. And as more consumers continue to focus on finding the items they need at the best possible values, Walmart should remain a long-term winner in this market environment.

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