Wall Street cycles between bull markets and bear markets. While bear markets can be emotionally difficult to deal with and financially painful, they are just a fact of life for investors. And they can be an opportunity to add high-quality, long-term holdings, as investors often throw the baby out with the bathwater during bear markets.
Although there are positive developments today, such as the SpaceX (SPCX 3.55%) IPO and the agreement in the Middle East, the swift market decline on June 10 highlights the downside risk. When investors adopt a risk-off attitude, markets could quickly crater. And you should have a wish list prepared just in case, perhaps including financial companies such as Chubb (CB 1.39%), Visa (V 0.80%), and Berkshire Hathaway (BRKA 0.50%) (BRKB 0.37%). Here’s why.
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Chubb is conservative by nature
Chubb is an insurance company operating across property and casualty, reinsurance, and life insurance. It has operations across the world. However, the reason it would be a desirable purchase in a downturn is its conservative nature. This was on display in the first quarter of 2026, when the company reported a combined ratio of 84%.
The combined ratio compares losses from claims and operating expenses to premiums earned. A ratio below 100% indicates a profit is being made. To be fair, the company is coming out of a strong period for pricing, with more recent pricing activity suggesting that the good times are near an end. However, this is the industry’s normal cycle, and Chubb is well prepared to deal with it. The key takeaway is that Chubb has a strong underwriting history, which positions it well to weather the full business cycle.
Today’s Change
(-1.39%) $-4.56
Current Price
$323.40
Key Data Points
Market Cap
$125B
Day’s Range
$322.00 – $329.95
52wk Range
$264.10 – $345.67
Volume
3M
Avg Vol
1.7M
Dividend Yield
1.22%
And on top of that, it also benefits from investing the float. The float is the cash it collects from premiums while it waits for insurance claims. The money it generates from the float fluctuates over time, but it remains a powerful source of profits. In the first quarter, net investment income totaled $1.7 billion. You might want to have this leading insurance company on your wish list so you are prepared to buy it during the next bear market.
Visa sidesteps financial risk
Visa is one of the world’s largest payment processors. It collects a small fee each time it connects a buyer to a seller. Those fees add up, with the company handling 66.1 billion transactions in the fiscal second quarter of 2026 alone. That allowed the company to generate $11.2 billion in revenues, up 17% year over year, pushing adjusted earnings higher by 20%. The big story is that Visa doesn’t assume any financial risk on the transactions it facilitates. Those risks are borne by the financial institutions that issue Visa-branded cards.
Today’s Change
(-0.80%) $-2.65
Current Price
$327.74
Key Data Points
Market Cap
$617B
Day’s Range
$327.10 – $332.13
52wk Range
$293.89 – $359.66
Volume
297.9K
Avg Vol
7.6M
Gross Margin
78.28%
Dividend Yield
0.79%
A market downturn or even a recession wouldn’t be a huge deal for Visa’s business. Sure, transaction volume may slow for a short period, but the long-term shift from cash to card transactions isn’t likely to reverse. And that makes Visa a long-term growth story that even conservative investors should appreciate. If the stock drops in a bear market, it’s worth taking a closer look.
Berkshire Hathaway has the cash to go shopping
Another stock you might want to consider in a market retreat is Berkshire Hathaway. It is a giant conglomerate, but it has material insurance operations. So, it has some similarities to Chubb, noting that Berkshire Hathaway is also operated in a fairly conservative fashion. However, the reason to include the company on this list right now is the nearly $400 billion in cash it had on its balance sheet at the end of the first quarter of 2026.
Today’s Change
(-0.37%) $-1.82
Current Price
$489.46
Key Data Points
Market Cap
$1.1T
Day’s Range
$485.77 – $493.57
52wk Range
$455.19 – $516.85
Volume
8.9M
Avg Vol
5M
Gross Margin
23.70%
Berkshire Hathaway is well known for buying entire companies and investing in publicly traded stocks. But the approach taken has historically been very conservative, with cash held until a well-run company can be invested in at an attractive price. A bear market could materially expand the company’s investment opportunities. In the meantime, the cash provides a cushion ahead of just such a market downturn. In other words, Berkshire Hathaway is ready for a market storm, and you may want to be ready to buy the stock if it goes down along with the market.
Bear markets can be opportunities if you are ready
Chubb, Visa, and Berkshire Hathaway are all well-run companies with resilient businesses. If there’s a market sell-off, they could become increasingly attractive stocks to buy. But you need to be prepared to buy them because buying in a bear market is emotionally difficult. That’s why now, while the markets are still near all-time highs, is the time to make a wish list. If you do, you may find it easier to act, effectively turning a market downturn into an investment opportunity.
