Strategic Moves: 2 ASX Gems for Market Downturns

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Watching ASX shares decline in a stock market crash is unnerving, but successful investors recognize the opportunity amid the chaos. The wealthiest, like Warren Buffett, thrive by seizing discounted shares during market panics.

During market downturns, quality shares, especially ASX technology stocks, often experience significant drops, making it an opportune time for savvy investors. Let's delve into two ASX gems poised to shine during the next market crash.

1. TechnologyOne Ltd (ASX: TNE)

This ASX 200 tech share and enterprise software company, TechnologyOne, has consistently delivered impressive growth. In its 2023 financial year, it reported a remarkable 19% rise in revenues to $41.4 million and a 16% spike in profits before tax to $129.9 million. Despite its lofty price-to-earnings (P/E) ratio of 54.35, past pullbacks suggest potential opportunities during a crash.

While currently trading at $16.03, a 30% increase over the past 12 months and nearly 200% over five years, TechnologyOne has experienced significant pullbacks in the past. Monitoring this tech stock closely during a market crash could unveil compelling entry points.

2. Washington H. Soul Pattinson And Co Ltd (ASX: SOL)

A well-regarded investment house, ASX SOL (Soul Patts), offers a diversified portfolio with a track record of market-crushing returns. Boasting a remarkable 23-year streak of annual dividend pay rises, ASX SOL is a beacon of quality in the ASX. Despite its stellar run in recent years, if a market crash occurs, creating a buying opportunity, ASX SOL may be a strategic addition to your portfolio.

Warren Buffett's wisdom, "It's better to own a wonderful company at a fair price than a fair company at a wonderful price," underscores the enduring appeal of quality investments like ASX SOL. As the market reacts to short-term fluctuations, a stock market crash could unveil ASX SOL at a more attractive valuation.

In conclusion, navigating stock market crashes requires a keen eye for quality opportunities. TechnologyOne and Soul Patts, with their proven track records, could be no-brainer buys for investors seeking resilient stocks during tumultuous market conditions. Always approach investment decisions with a long-term perspective, considering the intrinsic value of these gems, especially when the market presents them on sale.
Location: Australia

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