Time to Shore Up Your Personal Portfolio With These 3 Bullet-Proof Blue-Chip Stocks
Chris MacDonald
Mon, December 1, 2025 at 2:16 PM EST
5 min read
In this article:
There are a number of valid reasons why many investors may be souring on the ability of equity markets to continue to rise at a 20%+ rate in the years to come.
Quick Read
-
Berkshire Hathaway (BRK-B) recently invested in Alphabet and will transition to CEO Greg Abel on January 1.
-
McDonald’s (MCD) benefits from consumer trade-down effects as lower-income groups choose affordable dining options.
-
Johnson & Johnson (JNJ) stock surged over 40% year-to-date after spinning off its consumer products division.
-
Some investors get rich while others struggle because they never learned there are two completely different strategies to building wealth. Don’t make the same mistake, learn about both here.
Indeed, it's been an impressive run for investors in the stock market in recent years, with such outsized gains becoming the norm. That's not typically the case, with stocks rising an average of between 7% and 10% on a given year. Thus, many investors in the market are right to infer that at some point, we'll have to see some sort of selloff materialize. Trees don't grow to the sky, as the saying goes.
That said, there are plenty of bulls who contest that earnings are growing fast, particularly for those companies driving the majority of returns in the market right now. And given the number of defensive stocks in the market which are trading at reasonable multiples, there are places to hide for those looking to stay invested (but do so in a more conservative way).
For those who find themselves on the lower-risk end of the risk spectrum, here are three blue-chip stocks I'd consider about as bulletproof as they come in the equity market right now.
Berkshire Hathaway (BRK-B)
Warren Buffett-led Berkshire Hathaway (NYSE:BRK-B) is perhaps the "bluest" of all blue-chip stocks in the market, at least in my view.
Known as the "Oracle of Omaha," Buffett has an absolutely incredible track record of picking companies near the bottom of some longer-term cycle, and holding these stocks through various cycles toward their all-time highs. He's focused a great deal of his attention on companies and industries he can understand (such as insurance, financials, railroads, etc.), and he's made a ton of money doing so.
The thing is, Berkshire's core holdings are all value-focused picks with excellent brands in markets with only a few major players. Berkshire's investing style is to take large stakes in cash flow producing companies with excellent growth outlooks, paying "reasonable prices for excellent companies." That's what we're all after, right?
Story Continues
With a recent big bet on Alphabet (NASDAQ:GOOG) signaling a shift toward greater openness to high-quality tech stocks, I think Berkshire's recent dip on the announcement that Buffett will officially be handing the reins over to incoming CEO Greg Abel on January 1 is one worth buying.
McDonald's (MCD)
The fast food industry is one area of the market I'd argue is about as defensive as they come. Trade-down effects are taking hold in certain areas of the consumer-driven economy, with many looking to dine away from home opting for lower-cost options from the likes of McDonald's (NYSE:MCD) and its peers in recent quarters.
I'd expect these trends to accelerate moving forward, for a number of reasons. Much ado has been made of the weakness we're seeing among lower- and middle-income consumers, and the bifurcation of the so-called "K-shaped" economy we're seeing play out more broadly. As more folks within these income groups seek out more affordable options in the dining away from home category, this trade down effect could propel strong earnings even in a declining market environment.
Second, I think the whole narrative around GLP-1 drugs and other dieting trends disrupting McDonald's growth outlook long-term are overblown. The ultimate impact of widespread usage of these drugs remains uncertain. And while I do think some amount of slippage will come in key developed markets, growth from the company's expanding global store footprint could more than offset any near-term declines on this front.
Johnson & Johnson (JNJ)
Johnson & Johnson (NYSE:JNJ) is among the most impressive blue-chip companies in the market due to its size and importance in the healthcare sector. After spinning of its consumer products division, and also planning a spinoff of its orthopedics division, a number of analysts have pointed out that JNJ's forward investing thesis is much easier to understand. I like a simple thesis, and so does the market, apparently.
On a year-to-date basis, JNJ stock is up more than 40%. I'd argue this rally could have a lot more room to run, considering this stock trades at a price-earnings multiple below 20-times and currently carries a 2.5% dividend yield.
With healthy capital return metrics, including both share buybacks and dividend increases over time, anchored by a strong portfolio of drugs and medtech franchises, I think Johnson & Johnson is a top blue-chip stock investors will want to think about holding through whatever volatility we see come our way in the near future.
Why Some Investors Get Rich While Others Struggle
The fact is there are two totally different investment paths you can take right now. And while either can make you some money, choosing the right one at the right time can mean the difference between just getting by and getting truly rich. Most people don’t even realize the difference, and that mistake can be devastating for your portfolio. Whether you’re investing $1,000, or $1,000,000 today, learn the difference and put yourself on the right path. See the report.
View Comments