Deciding When to Sell Stocks: Holding Through Market Crashes With Conviction

The stock market is unpredictable, and investors often face the difficult question: is it time to sell stocks when volatility strikes? My answer is nuanced. I hold approximately 45 stocks in my portfolio, and if a market downturn were to occur, I would likely retain most—if not all—of them. My core investment philosophy is straightforward: I rarely sell in declining markets unless something fundamentally changes within the business itself. This doesn’t mean holding passively; rather, it means understanding which stocks deserve your conviction even when times get tough.

Why I’m Holding, Not Selling, During Market Stress

There’s an important distinction between emotional selling and strategic decision-making. I refuse to follow a simple rule: never sell a stock solely because its price has dropped. Prices fluctuate; businesses either improve or deteriorate. The key is identifying which holdings can weather storms while maintaining your financial discipline.

That said, not all stocks are equal during turbulent periods. Some portfolios become exhausting to maintain through a crash because the psychological toll becomes overwhelming. But others—stocks grounded in enduring business models—remain relatively stable and allow investors to maintain composure. These are the holdings worth prioritizing when building a crash-resistant portfolio.

Berkshire Hathaway: A Fortress of Financial Flexibility

If I could own just one security through a severe market correction, Berkshire Hathaway would be my choice. The reason is straightforward: this company operates more than 60 subsidiaries, the majority of which are “evergreen” businesses—enterprises that thrive regardless of economic conditions.

Consider the resilience built into Berkshire’s portfolio. Consumers must pay their auto insurance premiums to GEICO even during recessions. Utility customers continue making essential payments to Berkshire Hathaway Energy when times are tough. These recurring revenue streams provide stability that many companies simply cannot match.

Perhaps most importantly, Berkshire maintains an extraordinary cash position. As of the third quarter, the company held approximately $382 billion in cash equivalents on its balance sheet. This fortress-like liquidity provides tremendous strategic optionality. When panic grips markets, companies with deep pockets can capitalize on dislocated valuations. We saw this firsthand after the 2008 financial crisis, when Berkshire deployed capital into Bank of America and Goldman Sachs at attractive prices—emerging from that downturn substantially stronger than before. The same playbook would likely apply in future market stress scenarios.

Prologis: Infrastructure That the Economy Cannot Abandon

Prologis represents another category of resilient holding—the essential backbone that modern commerce depends upon. As the world’s largest industrial real estate investment trust (REIT), Prologis owns over 1 billion square feet of logistics infrastructure: distribution centers, warehouses, and fulfillment facilities that have become indispensable to the global economy.

The critical insight here is straightforward: e-commerce expansion is not a temporary phenomenon that evaporates during market downturns. Companies like Amazon and FedEx must continue moving merchandise globally regardless of stock market volatility. While demand for new properties might contract during economic pressure, the long-term trajectory decisively favors expanded logistics volume. This secular trend means Prologis properties retain their value proposition even when investor sentiment darkens.

The Difference Between Business Decline and Stock Price Decline

I want to be explicit about an important distinction: holding these specific stocks through a crash reflects confidence in their underlying businesses, not a prediction that their stock prices will be immune to downward pressure. Both Berkshire Hathaway and Prologis would likely experience price declines during broad market stress. They might underperform less dramatically than the overall market, but they would not be untouched.

However, this distinction creates opportunity. If either of these stocks were to experience significant pullbacks during a market crash, I would view such weakness as an attractive buying opportunity rather than a warning sign to exit. This is the essence of contrarian investing: maintaining conviction in quality assets precisely when doubt becomes widespread.

Building a Sell Discipline Without Panic

Understanding when to sell stocks—and more importantly, when not to sell—requires separating rational analysis from emotional impulse. Sell when a business fundamentally deteriorates. Sell when valuation becomes absurdly detached from reality. But don’t sell simply because the market is declining and discomfort sets in.

The stocks discussed here represent companies with durable competitive advantages, consistent cash generation, and proven ability to navigate economic uncertainty. These characteristics don’t change because equity indices experience downward volatility. In fact, market corrections can create the rare moments when patient investors gain the most advantageous entry points for quality businesses.

The investment discipline worth developing is neither blind holding nor reactive selling—it’s the ability to maintain conviction in quality while remaining alert to genuine deterioration in business fundamentals.