The most successful investors are those who emphasize continual learning. There are always lessons that the stock market is teaching.
Just in the past decade, for instance, the S&P 500 index has experienced multiple drawdowns of greater than 10%. The takeaway is that volatility can’t be avoided; it’s just a part of how things work.
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Investors might now be more aware of these swings, which could become more pronounced due to the rapidly evolving economy. As a result, maybe it’s time to find companies that can withstand the pressure, especially now that artificial intelligence (AI) has everyone worried.
Here are four consumer staples businesses that are built to handle any downturn. Their stable operations can boost the safety of a portfolio, although they aren’t necessarily going to put up robust investment gains that can beat the market.
Coca-Cola (NYSE: KO) has a presence in virtually all corners of the globe, with its more than 200 beverage varieties. An estimated 2.2 billion servings of its products are consumed every day.
This business stands out thanks to its powerful brand, durable demand even in recessionary times, and incredible earnings power. Coca-Cola’s adjusted operating margin in fiscal 2025 was a stellar 31.2%. Profitability like this supports management’s ability to fund dividend payouts that have risen in 64 straight years.
This stock isn’t known to be a market outperformer, producing a total return of 123% in the past 10 years (as of April 15). The S&P 500 index, by comparison, put up a total return of 300% during the same time.
Next on the list is Costco Wholesale (NASDAQ: COST). This huge warehouse club operator, with 924 locations around the world, specializes in extremely low prices. Consumers pay yearly memberships to shop there, which supports loyalty and repeat visits.
It seems that Costco is able to report growth in same-store sales (comps) no matter what’s going on with the economy. Whether it’s a health crisis, surging inflation, geopolitical tension, or general uncertainty, this company is the envy of its peers.
It’s impossible to be disappointed by Costco’s investment performance. In the past five years, the stock’s total return of 182% was more than double the S&P 500’s gain.
