May 28, 2020 (IAM Newswire via COMTEX) -- Blue chips come with the reputation that they do well even during economic downturns and these large-cap and blue-chip stocks have what it takes plus even managed to outperform the market when combined.
Berkshire Hathaway Inc
One of the most recession-resistant stock at the moment but not without problems as Bill Ackman, the widely followed hedge fund manager, chose to exit his stake on Wednesday in Berkshire Hataway Inc /zigman2/quotes/200060694/composite BRK.B -0.65% /zigman2/quotes/208872451/composite BRK.A -0.70% . Despite Buffet's mistake by backing airlines only to sell all of the company's airline stocks just a few weeks later as the investment of almost $8 billion didn't get anywhere near its return, the company has a huge amount of cash which can be used to go on an acquisition spree so no need to worry! The same most certainly cannot be said for poor United Airlines Holding /zigman2/quotes/205037281/composite UAL -5.18% , American Airlines Group /zigman2/quotes/209207041/composite AAL -4.14% , Southwest Airlines Co /zigman2/quotes/201071949/composite LUV -4.42% and Delta Airlines Inc /zigman2/quotes/200327741/composite DAL -3.59% which are fighting for dear life with the $25 billion of governmental aid.
Despite the controversy regarding its privacy issues, the social media giant gathered 2.5 billion users. Along with subsidiaries Instagram and WhatsApp, Facebook /zigman2/quotes/205064656/composite FB +2.33% can be seen as triggering the two eternal human traits: ego and a desire to connect with others which made it only thrive more during the pandemic's social distancing.
Dollar General Corporation
Speaking of recession-resiliency, the discount retailer Dollar General Corporation /zigman2/quotes/200691429/composite DG -0.84% just proved its status by a profit jump of 77% for the quarter that ended on May 1 [st] .
With surging sales with a 28% increase, it showed a sound business that promises to fare well in uncertain waters as well as the promise of acceptable growth in a normal environment so there should be no concern that the previous guidance has been withdrawn due to uncertainty yet the company still expects to exceed the fiscal 2020 net sales, same-store sales, as well as diluted EPS guidance.
It's impossible to speak of resiliency in the COVID-19 era without mentioning the pharmaceutical sector. Novartis /zigman2/quotes/203243705/composite NVS +1.07% a $200 billion Swiss drug maker pays a respectable 3.5% dividend yield and uses just 56% of profits to do so. Since its new CEO took the wheel in 2018, the company acquired gene therapy company AveXis, spun off ophthalmology unit Alcon and agreed to buy a company that has a potentially ground-breaking drug to fight cholesterol and cardiovascular disease, so The Medicines Company is surely worth the $9.7 billion investment. Despite the intense rivalry, even in Switzerland with Roche Holding AG /zigman2/quotes/208994986/delayed RHHBY +1.39% as they are targeting the same diseases, Novartis has its throne to its advantage for now as Roche is still a midcap.
From an attractive dividend to a compelling investment opportunity, the drug maker AbbVie Inc /zigman2/quotes/202428675/composite ABBV -0.99% is still a solid choice despite a recent failed attempt in testing an experimental drug for IBS.
Although COVID-19 has forced us to redefine 'resiliency' as even the 2008 Financial Crisis didn't put the whole economy and the whole world to a virtual standstill, the immense power of blue chips has remained pretty much intact, especially when compared to others!
This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: firstname.lastname@example.org Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: email@example.com Questions about this release can be send to firstname.lastname@example.org
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