During the depths of the Great Recession in 2009, Warren Buffett said: “Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold.
When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons.” In other words, market crashes should be seen as great opportunities to buy the best stocks at discounted prices
If that happens, I’d scoop up more shares of Walmart (NASDAQ: WMT), Realty Income (NYSE: O), and Philip Morris International (NYSE: PM) without any hesitation. Walmart is an evergreen retailer Walmart, the world’s largest brick-and-mortar retailer with over 10,800 stores and clubs across 19 countries, has raised its dividend for 53 consecutive years. Its forward yield of 0.8% might seem low today, partly because its stock has soared 155% over the past five years, but it has consistently raised its payout through wars, recessions, and other economic downturns.
Over the years, Walmart upgraded its e-commerce marketplace, used its stores to fulfill online orders, rolled out more curbside and same-day delivery options, matched Amazon’s prices, and launched its own Walmart+ service to challenge Amazon Prime. Walmart also expanded overseas, opened more Sam’s Club stores to compete against Costco, and even launched its own advertising business across its physical stores, mobile app, and connected TVs. All of those efforts kept Walmart relevant as the retail sector faced seismic shifts in consumer spending and other existential challenges.