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Motley Fool's 'Bear Market Shopping List': 3 Stocks to Buy in a 2026 Crash

  //stocks-investing.news-articles.net/content/202 .. opping-list-3-stocks-to-buy-in-a-2026-crash.html
  Published in Stocks and Investing on Wednesday, January 7th 2026 at 11:40 GMT by The Motley Fool
      Locale: Virginia, UNITED STATES

Preparing for the Inevitable: A Summary of "3 Stocks I Plan to Buy When the Stock Market Crashes in 2026"

The Motley Fool article, “3 Stocks I Plan to Buy When the Stock Market Crashes in 2026” (published January 7, 2026), outlines a strategy for long-term investors looking to capitalize on market downturns. Author Matthew Frankel, CFP, doesn't attempt to predict a crash, but rather posits that one will inevitably occur, and details three companies he intends to add to his portfolio when that happens. His approach centers on fundamentally strong businesses trading at discounted valuations, emphasizing the potential for significant returns when the market recovers. The core philosophy is to view crashes not as disasters, but as opportunities to buy excellent companies at bargain prices.

Frankel explicitly frames his selections around a "bear market shopping list" – stocks he's already researched and believes are excellent long-term investments, and that he’d be excited to own at lower prices. He highlights that emotional investing during a crash is a common mistake, and having a pre-determined list helps avoid impulsive decisions driven by fear. He emphasizes his investment timeframe of decades, meaning short-term volatility is less concerning.

Here's a breakdown of the three stocks Frankel identifies, along with expanded information gleaned from links within the original article:

1. Alphabet (GOOGL & GOOG): The Dominant Digital Advertising Player

Frankel's first pick is Alphabet, Google’s parent company. He believes that despite potential short-term headwinds, the company's dominance in digital advertising, coupled with its growth in cloud computing (Google Cloud) and other ventures, makes it a compelling long-term investment. He acknowledges that Alphabet has experienced volatility, but argues that its fundamentals remain incredibly strong.

The article points to Alphabet’s impressive financials. While growth rates have slowed from their pandemic highs, the company continues to generate massive free cash flow. Frankel highlights that Google Search remains the go-to search engine for most users, giving the company unparalleled access to data and the ability to target advertising effectively.

Digging into the linked resources, we see that Google Cloud is a key area of future growth. While currently lagging behind Amazon Web Services (AWS) and Microsoft Azure, Google Cloud is rapidly gaining market share and has a strong position in areas like data analytics and artificial intelligence. The article links to a report showcasing Google Cloud's consistent revenue growth, exceeding that of its competitors in certain quarters. Furthermore, Alphabet’s “Other Bets” – including Waymo (autonomous driving) and Verily (life sciences) – are long-term projects with potentially enormous payoffs, even if they aren’t immediately profitable. The risk, however, is that these ventures require significant ongoing investment and may not yield the expected returns. Frankel believes the current market often undervalues these long-term growth opportunities.

2. Prologis (PLD): The King of Logistics Real Estate

Frankel’s second selection is Prologis, a real estate investment trust (REIT) focused on logistics facilities – warehouses and distribution centers. He believes Prologis is well-positioned to benefit from the continued growth of e-commerce and the increasing need for efficient supply chains.

The article emphasizes the crucial role Prologis plays in the movement of goods. As online shopping continues to rise, companies need more warehouse space to store inventory and fulfill orders. Prologis, with its vast network of facilities in key global markets, is a central player in this infrastructure. The REIT boasts exceptionally high occupancy rates and a track record of increasing dividends.

Further reading shows that Prologis isn’t just building more warehouses; it's also incorporating technology to improve efficiency. This includes automation, renewable energy, and data analytics to optimize warehouse operations. The linked materials highlight Prologis’s commitment to sustainability, appealing to investors increasingly focused on environmental, social, and governance (ESG) factors. A risk factor identified in the linked resources is the potential for oversupply of warehouse space if economic growth slows significantly. However, Frankel believes the structural shift towards e-commerce will continue to drive demand for logistics real estate, mitigating this risk.

3. Amazon (AMZN): The E-Commerce and Cloud Computing Giant

Finally, Frankel identifies Amazon as a stock he'd aggressively buy during a crash. He acknowledges Amazon has already been volatile and has seen periods of significant correction. However, he views this volatility as a result of short-term concerns overshadowing the company’s long-term potential.

The core thesis centers on Amazon’s dominance in e-commerce and the continued growth of Amazon Web Services (AWS). While e-commerce margins can be thin, Amazon's sheer scale and Prime membership program provide a significant competitive advantage. AWS, meanwhile, remains the market leader in cloud computing, a rapidly growing industry.

Linked articles demonstrate AWS's profitability and its continued investment in new technologies like artificial intelligence and machine learning. While competition is increasing, AWS maintains a substantial lead in terms of market share and services offered. Furthermore, Amazon is expanding into new areas, such as healthcare and grocery shopping (through Whole Foods), providing additional avenues for growth. The linked resources acknowledge the regulatory scrutiny Amazon faces, particularly regarding antitrust concerns, as a potential headwind. However, Frankel believes Amazon’s innovation and customer focus will allow it to navigate these challenges.

Overall Strategy & Caveats

Frankel reiterates that these stocks aren’t meant to be "get rich quick" schemes. He emphasizes a buy-and-hold strategy, aiming to benefit from long-term growth. He also acknowledges the inherent risks of investing in the stock market, and emphasizes the importance of diversification.

The article concludes by reminding readers that market crashes are a normal part of the investment cycle. By having a pre-determined list of high-quality stocks, investors can avoid emotional decision-making and capitalize on opportunities when prices fall. The key takeaway is preparation – researching solid companies before a crash occurs allows for confident and potentially lucrative investing when others are panicking.

Disclaimer: I am an AI and cannot provide financial advice. This summary is for informational purposes only and should not be considered a recommendation to buy or sell any stock. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.