There is little doubt that a recession is coming and that the stock market is likely to drop 30% as a result. During that time it is a good idea to find "recession-proof stocks" by following certain criteria, including finding a company that resonates with their values, has a competitive advantage, is run by a management team with integrity and a track record of success, and can be bought at a discount. You should focus on industries that do well in recessions, such as health care and utility companies, and on companies that have historically performed well during recessions, which he refers to as "antifragile" companies.

A recession is a period of economic downturn, typically characterized by a decline in gross domestic product (GDP), high unemployment, and reduced business activity. During a recession, stock markets may also experience a decline, as investors become more risk-averse and sell off stocks. As a result, it may be advisable for investors to consider finding stocks that are "recession-proof," or likely to perform well during a recession.

One way to find recession-proof stocks is to focus on industries that tend to do well during economic downturns. For example, health care and utility companies may be less affected by a recession because they provide essential services that are in high demand regardless of economic conditions. Other industries that may perform well during a recession include consumer staples (such as food and household products), pharmaceuticals, and certain technology companies that offer products or services that are resistant to economic cycles.

In addition to focusing on certain industries, investors may also want to consider the financial health and management of a company when looking for recession-proof stocks. Companies with strong balance sheets, good cash flow, and a history of steady earnings may be better equipped to weather a recession. It may also be beneficial to look for companies with management teams that have a track record of success and integrity, as these factors may indicate a company's ability to adapt to changing market conditions.

Finally, investors may want to consider buying stocks at a discount, or below their intrinsic value. This strategy, known as value investing, involves buying stocks that are undervalued by the market and holding onto them until their value increases. By buying stocks at a discount, investors may be able to minimize their risk and potentially earn higher returns in the long run.

Overall, finding recession-proof stocks requires careful research and consideration of a company's industry, financial health, management, and valuation. By following these criteria, investors may be able to identify stocks that are likely to perform well during a recession and potentially generate strong returns in the long term.