In the latest episode of the Money & Investing podcast, hosts Andrew and Mitch Olarenshaw discuss how investors can prepare for the next market crash by identifying five high-quality stocks they would purchase immediately if markets were to fall sharply.

Rather than fearing market downturns, the hosts argue that disciplined investors can use periods of volatility to build long-term wealth by focusing on quality businesses trading at attractive prices. Market crashes, while unsettling, often present opportunities to acquire exceptional companies at discounted valuations. Stock market corrections — declines of 10% or more from a recent peak — occur with enough regularity that preparation is not optional for long-term investors but a structural feature of equity investing.

Preparation Over Prediction

Andrew and Mitch emphasise that preparation is more important than prediction when it comes to navigating market downturns. Having a watchlist of target companies ready in advance, they explain, allows investors to act with confidence when share prices fall rather than reacting emotionally to rapidly changing conditions.

A watchlist approach is grounded in the principle of identifying strong businesses before a crisis hits, so that when prices decline, the investor already understands the company's fundamentals and can make an informed decision quickly. This is consistent with the widely cited principle that investors should focus on what they can control — their own process and research — rather than attempting to forecast macroeconomic events.

What Separates Quality Businesses

Not every company is worth buying during a downturn. The episode outlines several key characteristics that distinguish quality businesses from the broader market, including:

• Strong balance sheets — companies with manageable debt levels and sufficient liquidity to weather economic stress.
• Reliable earnings — businesses with consistent and predictable revenue streams that are less vulnerable to sharp economic contractions.
• Competitive advantages — durable economic moats, such as brand strength, network effects, or proprietary technology, that help protect market share.
• Long-term growth potential — companies operating in sectors with structural tailwinds that support sustained expansion over multiple years.

These criteria echo the framework popularised by investors such as Warren Buffett, who has long advocated for buying outstanding businesses at fair prices, particularly when fear in the broader market causes indiscriminate selling that temporarily depresses valuations across entire sectors.

Five Selected Stocks

The episode reveals five carefully selected stocks that Andrew and Mitch believe offer strong value during a market crash. For each company, they explain why it deserves a place on an investor's watchlist and what makes it resilient across different market cycles. The discussion covers the specific attributes of each business that contribute to its ability to withstand volatility and recover strongly when conditions improve.

Staying Disciplined Through Volatility

Fear often leads investors to sell at the worst possible time — typically near the bottom of a market cycle. Andrew and Mitch stress that having a structured investment plan can help investors stay disciplined, avoid emotional decision-making, and take advantage of opportunities when others are panicking. Studies in behavioural finance have documented that retail investors frequently underperform the very funds they invest in, largely because of poorly timed entries and exits driven by emotion.

Successful investing, they note, is not about timing the market perfectly. Instead, it involves building a portfolio designed to withstand short-term volatility while positioning the investor to benefit from the broader market recovery that has historically followed every major crash. Empirical evidence across multiple decades of market history shows that prolonged downturns have generally been followed by recoveries, though the duration and magnitude of each cycle varies.

Further Resources

For more information about the Money & Investing podcast, visit Andrew and Mitch's book, The Wealth Playbook: Your Ultimate Guide to Financial Security, is available at and on Audible at

Disclaimer: Wealth Magnet Pty Ltd (ABN 52 618 868 830) trading as Australian Investment Education is a Corporate Authorised Representative (CAR no. 1255231) of Grange Financial Services Pty Ltd (AFSL No. 488609). The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions.