Michael Burry: The Only 4 Stocks That Survived Every Market Crash

The Importance of Survival Investing

• 💡 Avoiding losers is the real secret to building wealth, as the math of losses is brutal; a 50% loss requires a 100% gain to break even.
• 🎯 True survival means businesses that maintain competitive advantages, generate cash flow, protect dividends, and recover to new highs, often emerging stronger.

Procter & Gamble: Essential Consumer Staples

• 🧼 PNG sells necessities like Tide and Pampers, which people cannot stop buying, even during severe economic downturns like the Great Depression.
• 💰 The company boasts consistent cash flow generation and has paid dividends for over 130 years, increasing them for 67 consecutive years.
• 📈 During crashes, PNG's stock falls less and recovers faster than the overall market, demonstrating its resilience.

Johnson & Johnson: Diversified Healthcare Resilience

• 🩹 J&J's diversified segments (consumer health, pharma, medical devices) provide stability, with sales remaining steady even during recessions.
• 🏦 The company maintains a AAA credit rating, allowing it to borrow at low rates and go on offense during market freezes when competitors struggle.
• ✅ J&J has increased its dividends for 61 consecutive years, proving its model generates growing cash flows regardless of economic conditions.

Coca-Cola: Global Brand and Distribution Power

• 🌍 Coca-Cola leverages one of the most valuable global brands and an unmatched distribution network reaching virtually every corner of the planet.
• 🥤 As an affordable luxury, Coca-Cola's sales remain remarkably stable during economic downturns, as people still seek small indulgences.
• 📊 With 80% of revenue from outside the US, its geographic diversification provides stability and growth opportunities, even during regional crises.

Walmart: The Low-Cost Provider Advantage

• 🛒 Walmart's core competitive advantage is being the low-cost provider of essential goods, attracting price-conscious consumers during recessions.
• ⚙️ An unmatched logistics and supply chain infrastructure creates a powerful flywheel, allowing lower prices, higher volume, and stronger supplier negotiations.
• 📈 During crashes, Walmart's traffic and market share increase, strengthening its competitive position when the economy recovers.

Key Characteristics of Crash-Resistant Businesses

• 🔑 They offer products or services people need regardless of economic conditions, possess durable competitive advantages, and generate consistent cash flows.
• 🏦 These companies maintain strong balance sheets for flexibility and have proven their models over extremely long periods, surviving multiple crises.
• 🧠 The lesson is to identify these specific business characteristics when building a portfolio, as survival itself is a form of outperformance over full market cycles.