Coronavirus fallout: What type of businesses are you looking to buy during the crash?

TL;DR

Invest in high-quality businesses with strong balance sheets, such as Google, Microsoft, Facebook, and Apple, during a market crash.

Transcript

today and welcome back to the video series my name's robert goudie and we're just going through some of the most frequently asked questions that clients are coming up with during what is a very severe crash and a nervous time for investors so we're trying to make sure that clients are making the right decisions at some of the most you know toughest... Read More

Key Insights

• 💪 Investing in businesses with strong balance sheets and monopolistic products/services, like Google, Microsoft, Facebook, and Apple, is advisable during a market crash.
• ❓ The retail sector is vulnerable during market downturns due to reduced consumer spending and competition from online retailers.
• ✋ Concerns about job losses and high household debt in Australia may impact the banking sector during a market crash.

Questions & Answers

Q: What types of businesses should investors focus on during a market crash?

Investors should focus on businesses with strong balance sheets and monopolistic products/services, such as Google, Microsoft, Facebook, and Apple. These businesses are less likely to go broke and can withstand market downturns.

Q: Why should investors be cautious about investing in the retail sector during a market crash?

The retail sector is vulnerable during a market crash due to reduced consumer spending and the rise of online shopping. Past bankruptcies in the sector, especially in Australia, raise concerns about future job losses and defaults on home loans.

Q: What other sectors apart from technology can be promising during a market crash?

Apart from technology, sectors like payment systems (Visa, MasterCard, PayPal) can be promising during a market crash. As the way we pay for things shifts towards electronic transactions, these businesses have the potential for growth.

Q: Is it possible to find safe havens for investment during a market crash?

It is important to note that there are no true safe havens during a market crash. Even high-quality businesses are affected. However, investing in businesses with strong balance sheets and a stable market position can provide opportunities at a discount.

Summary & Key Takeaways

• During a market crash, it is crucial to make the right investment decisions. Look for businesses with strong balance sheets and monopolistic products/services, like Google and Microsoft.

• Avoid investing in the retail sector, as it may be negatively impacted by reduced consumer spending and the rise of online shopping.

• Concerns about job losses and high household debt in Australia may affect the banking sector, making it a bit concerning in worsening market conditions.

• Scalable businesses with a strong balance sheet and a tailwind in their industry, such as Visa or MasterCard, are also attractive investment options during a market crash.