Strong Cash Position
Look for companies with a strong cash position. If a company is short on cash, liabilities are hard to meet. Some of the best companies have a lot of cash reserves to help them in a market downturn. The cash gives the company options. They can buy up companies when the getting is good and they can buoy themselves up in bad economic times.
One great example of this is Ford. Ford has always believed in keeping a lot of cash on hand. And, they are the only American automaker that didn't take money from the government. Had you studied the financial information of Gm, Ford, and Chrysler you would see that Ford has always been in a much better financial position than the other two. The reason is their management is better.
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