Market Crash: 2 Stocks I'd Buy Without Hesitation

Key Points
The S&P 500 is down year to date, and investors are concerned about a market downturn.
While no one can predict what will happen, investors can prepare for the worst.
Here are two stocks that should perform well in a downturn.
- 10 stocks we like better than Coca-Cola ›
Markets have been volatile in 2026, and there are several reasons for that. For starters, after a three-year bull market, valuations for many large-cap tech stocks have skyrocketed.
The inflation-adjusted Shiller P/E ratio, which tracks the valuation of stocks over the past 10 years, is at around 37, which is as high as it's been since November 2021 when it reached 38. What followed that over the next year or so was a bear market that saw the S&P 500 fall about 18% in 2022.
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The Shiller P/E had been at 39 in January, and it has dropped slightly since then. But then when you consider the uncertainty over the war in Iran and the closing of the Strait of Hormuz, which has led to rising gas prices, there is another layer of risk added to the markets and economy.
Will we see the market crash we saw in 2022? It is difficult to predict, but a growing number of investors are concerned about it. While investors can't predict what will happen, they can prepare for the worst by adding stocks to their portfolio that should outperform if the market does crash.
Here are two great choices, Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) and Coca-Cola (NYSE: KO).
1. Berkshire Hathaway
Berkshire Hathaway has been a staple in many investors' portfolios for years under the leadership of Warren Buffett, who retired as CEO in 2025. But there is no reason to think the investing discipline and strategy will change under new CEO Greg Abel, who has worked with Buffett for decades.
Buffett is a noted value investor, and the companies he bought or invested in were carefully vetted and selected for their value, management, consistency, and market dominance, among other criteria. They are companies and investments that tend to perform well in all market conditions, including, and especially during, downturns. Berkshire Hathaway is built to outperform in downturns because of its focus, which is exactly what it has done over the years.
In the last bear market of 2022, Berkshire Hathaway stock returned 3% while the S&P 500 index was down 18%. The stock is down roughly 4% this year, but that's mainly due to the uncertainty around the handoff to Abel. But the stock is cheap, trading at 15 times earnings. I would expect to see it outperform this year because it is built for these types of markets -- and built for the long run.
2. Coca-Cola
Speaking of Warren Buffett, Coca-Cola is one of his longest-held stocks and one of the largest in the Berkshire Hathaway portfolio.
Coca-Cola encompasses many of the traits that Buffett looks for, including its relatively low valuation, market dominance, and relative strength in various market conditions. As a consumer staple, Coca-Cola makes beverages that are in demand no matter the economic conditions.
The stock is up 7% year to date, and if you go back to the last bear market in 2022, it returned nearly 11%.
Coca-Cola is also one of the best, most reliable dividend stocks, which is an added benefit in this market. It has increased its dividend for 64 straight years, making it a Dividend King. And it currently has a robust yield of 2.84%.
Should you buy stock in Coca-Cola right now?
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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.