Investment Strategies During Market Crashes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: Fool
- Berkshire's Resilient Holdings: Amid a market crash, Berkshire Hathaway's portfolio includes over 60 subsidiaries, most of which are 'evergreen' businesses, ensuring profitability even during economic downturns, showcasing its strong risk resilience.
- Cash Reserve Advantage: As of Q3, Berkshire's cash reserves stood at approximately $382 billion, providing tremendous financial flexibility to seize investment opportunities during market downturns, thereby strengthening the company's position.
- Logistics Real Estate Stability: Prologis, the largest industrial REIT, owns over 1 billion square feet of logistics real estate, and despite market turmoil, the persistent demand from e-commerce ensures its long-term growth potential.
- Investment Opportunities in Volatility: While both Berkshire and Prologis are expected to perform relatively well during market crashes, they may still experience price fluctuations, and significant pullbacks would be viewed as excellent buying opportunities.
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Analyst Views on PLD
Wall Street analysts forecast PLD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PLD is 134.77 USD with a low forecast of 118.00 USD and a high forecast of 155.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 127.130
Low
118.00
Averages
134.77
High
155.00
Current: 127.130
Low
118.00
Averages
134.77
High
155.00
About PLD
Prologis, Inc. is a fully integrated real estate company. The Company operates through two segments: Real Estate (Rental Operations and Development) and Strategic Capital. Its Real Estate Segment represents the ownership and development of operating properties. The Real Estate Segment also includes development activities that lead to rental operations, including land held for development and properties under development, and other real estate investments, including renewable energy assets. Strategic Capital Segment represents the management of unconsolidated co-investment ventures. The Company is the general partner of Prologis, L.P. (the Operating Partnership or OP). Through the OP, it is engaged in the ownership, acquisition, development and management of logistics facilities with a focus on key markets in approximately 20 countries on four continents. It operates, manages and measures the operating performance of its properties on an owned and managed (O&M) basis.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
2026 Market Outlook and Top Dividend Stocks Recommendations
- Market Stability: In January 2026, the S&P 500 remains flat after three years of double-digit growth, with short-term volatility likely influenced by upcoming important earnings reports, prompting investors to prepare for the earnings season.
- Sustainable Dividend Stocks: Maintaining a strong portfolio of dividend stocks is crucial during market growth, especially for retirees, as these stocks not only provide stable income but also protect funds during market fluctuations.
- Coca-Cola's Dividend Strength: Coca-Cola (KO), a 'Dividend King', has raised its dividend for 63 consecutive years, currently yielding 2.8%, supported by its robust business model and acquisition strategies that enhance growth prospects.
- Stability of Realty Income: Realty Income (O), owning 15,500 properties globally, has paid monthly dividends for 667 consecutive months, with a current yield of 5.3%, demonstrating its stability and attractiveness in uncertain market conditions.
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Comparing Investments: REITs vs. S&P 500
- Long-Term REIT Performance: Over the past 25 to 52 years, REITs have achieved annual returns of 11% to 12%, significantly outperforming the S&P 500's high single-digit returns, highlighting their attractiveness for long-term investors.
- Lower Volatility Investment: While the S&P 500 has been stronger over the past decade, REITs typically exhibit lower volatility, making them suitable for conservative investors, especially when high-quality REITs are included in a diversified portfolio.
- Stable Income from Realty Income: Realty Income is known for its monthly dividend payments, currently offering a yield of 5.3%, and has increased its dividends annually for over 30 years, demonstrating strong cash flow and growth potential.
- Growth Potential of Prologis: Prologis focuses on logistics real estate, holding over 1.3 billion square feet of warehouse space, and has seen its stock price rise 481% since its 1994 IPO; despite recent underperformance compared to the S&P 500, its expansion into data centers may drive future returns.
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