The best performing stocks during and after crises

A historical appendix to the 'Prepper's Bunker' (Free)

Some stocks are always rising regardless, whether the overall market is in a bear market or in a state of collapse. Some stocks also bounce much faster and higher after the crisis.

Here we map out the stocks that performed the best during the Global Financial Crisis (GFC) and after the Great Depression. We have to emphasize that these are not investment advices. These stocks are just used to shed some light on the industries that may perform well also during crises and depressions.

Please see also the Prepper’s Bunker.

The Global Financial Crisis

The top five best performing US stocks in the year 2008 were: Dollar Tree, Anheuser Busch Inbev, Amgen, Walmart and Ross Stores.¹

Dollar Tree, variety stores where all costed $1 all less, produced a 60.8 percent return during 2008 outperforming the stock market by 99.3 percent.  Anheuser Busch Inbev, a global brewery company, returned 39.4 percent in 2008 outperforming the market by 77.9 percent. Biotech giant Amgen produced, e.g., vital cancer and anemia drugs, and produced a return of 24.3 percent in 2008 outperforming the market by 62.8 percent. Walmart, a hypermarket operator, produced a return of 20 percent in 2008 outperforming the market by 58.5 percent. Ross Stores, a discount clothing retailer, produced a return of 17.6 percent and outperformed the market by 56.1 percent in 2008.

To summarize, the companies that performed the best during the financial crash produced cheap necessity products, important drugs and beer.

The Great Depression

The top five best performing stocks from the bottom of the Great Depression in 1932 till 1954 in the US were: The Electric Boat (General Dynamic Electric Boat) Corporation, Container Corporation of America, Truax Traer Coal, International Paper & Power (International Paper) and Spicer Manufacturing.²

The first one of these made a return of 55 000 percent from 1932 till 1954. The General Dynamic Electric Boat corp. is a ship building subsidiary of General Dynamic corp. and it has been the main supplier of submarines for the US Navy for over 100 years. It, naturally, benefitted quite remarkably from the rearmament during WWII. Container Corporation of America produced a return of 37 199 percent and it manufactured corrugated boxes. Truax Traer Coal produced a return of 30 503 percent by enacting open-pit strip-mining across several states.³ International Paper & Power produced a return of 30 501 percent by manufacturing pulp and paper. After WWII it developed and perfected the production of coated paper.⁴ Spicer Manufacturing produced a return of 26 221 percent by producing universal joints for the car industry.⁵

So, after the Great Depression, in addition to those producing crucial military equipment, corporations with important innovations in growing fields in transportation, energy production and in living standards (paper) yielded the best returns. 

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Disclaimer:

The information contained herein is current as at the date of this entry.  The information presented here is considered reliable, but its accuracy is not guaranteed.  Changes may occur in the circumstances after the date of this entry and the information contained in this post may not hold true in the future.

No information contained in this entry should be construed as investment advice.  Readers should always consult their own personal financial or investment advisor before making any investment decision, and readers using this post do so solely at their own risk.  Readers must make an independent assessment of the risks involved and of the legal, tax, business, financial or other consequences of their actions. GnS Economics nor Tuomas Malinen cannot be held i) responsible for any decision taken, act or omission; or ii) liable for damages caused by such measures.

1. See U.S. News.

2. See the Motley Fool.

3. See the Mountain Scholar.

4. See Wikipedia.

5. See Wikipedia.