Highlights

• Various experts have already warned that the sharply rising inflation amid Russia and Ukraine crisis may push the UK economy into recession this summer.
• Warren Buffett, known as the Oracle of Omaha, has always said that if we look at the positive side of the economic slowdown is that it gives an opportunity to invest in premium stocks and assets at low prices.

Warren Buffett, known as the Oracle of Omaha, is an American business magnate, philanthropist, investor, and chairman and CEO of multinational conglomerate holding company Berkshire Hathaway Inc.

In a recent interview, the Oracle of Omaha said that one of his most important principles is to think of investments as owning businesses rather than mere stocks. He said nowadays most investors look at stocks just for returns nothing beyond that.

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Various experts have already warned that the sharply rising inflation in the UK amid the Russia and Ukraine crisis may push the economy into recession in the coming months. During the economic slowdown, overall economic activities fall as investment and spendings fall and businesses generate lower profits, which ultimately affects the stock value, but some sectors and investment assets may continue to perform better.

Buffet says that the positive side of an economic slowdown is that an investor may invest in premium stocks and assets at low prices. Back in 2009, the Oracle of Omaha said that the best thing an investor can do to protect himself from the rising cost of living is to sharpen his investing.

During a recession, investors should prioritise high-quality stocks with a strong background and sustainable business model with low debt. Investors should intend to hold the asset for the long term so that he or she can make most of the best days and benefit from the stock market’s good phase.

Buffet says it is easy to look at the company’s variables: earnings, performance, price-to-book multiples. But sometimes, indicators can be misleading, if the conditions are not favourable for the business.

Let us look at 3 FTSE-listed stocks that you may consider for recession.

Ferrexpo Plc (LON: FXPO)

The Swiss-based commodity trading and mining company, Ferrexpo Plc is engaged in mining, processing, and selling high-quality iron ore pellets to the global steel industry. The company has recently announced the approval of an increase in the level of funding for the Ferrexpo Humanitarian fund to US$12.5 million. It has reported a 48% increase in revenue to US$2,518 million in FY2021, from US$1,700 million in FY2022.

With a market cap of £1,029.50 million, the FTSE 250 listed company’s share value depreciated by -56.03% over the last year as of 22 April 2022, while its year-to-date return stands at -40.32. Ferrexpo Plc’s shares were trading at GBX 178.70, up by 2.17% at 11:45 AM (GMT), as of 22 April 2022.

Also Read: Lloyds, HSBC: Stocks to consider as interest rates are expected to rise again

Unilever Plc (LON: ULVR)

The world’s leading fast-moving consumer goods (FMCG) company operates in over 190 countries through more than 400 brands. With a market cap of £89,948.40 million, the FTSE 100 listed company’s share value depreciated by -14.77% over the last year as of 22 April 2022, while its year-to-date return stands at -10.57. Unilever Plc’s shares were trading at GBX 3,531.50, up by 0.47% at 11:45 AM (GMT), as of 22 April 2022.

2022 Kalkine Media® 

Rio Tinto Plc (LON: RIO)

The second-largest metals and mining company in the world is engaged in the production of copper, gold, iron ore, diamonds, uranium, energy, and minerals. With a market cap of £71,767.46 million, the FTSE 100 listed company’s share value depreciated by -4.92% over the last one year as of 22 April 2022, while its year-to-date return stands at 16.23%. Rio Tinto Plc’s shares were trading at GBX 5,687.00, down by 1.01% at 11:45 AM (GMT), as of 22 April 2022. 

AstraZeneca Plc (LON: AZN)

UK-based multinational biopharmaceutical company AstraZeneca Plc is engaged in developing, manufacturing, and selling biotechnology and pharma products. With a market cap of £162,754.63 million, the FTSE 100 listed company’s share value appreciated by 35.32% over the last one year as of 22 April 2022, while its year-to-date return stands at 18.97%. AstraZeneca Plc’s shares were trading at GBX 10,326.00, down by 1.70% at 11:45 AM (GMT), as of 22 April 2022.

Also Read: GRP, SSE, TRIG: Are these renewable energy stocks worth buying now?

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.