3 defensive ASX shares I’d buy in a market sell-off

Nobody knows when the next serious market sell-off will arrive.

But I think it is worth owning ASX shares that I would still feel comfortable holding if share prices suddenly fell 20% or 30%.

For me, that means looking for strong competitive positions, dependable demand, and businesses that can keep moving forward even when the economic backdrop becomes less friendly.

These are three ASX shares that fit that description.

Cochlear Ltd (ASX: COH)

Cochlear would be one of my first choices. It is a global leader in implantable hearing solutions, operating in a healthcare market where the underlying need does not disappear because economic conditions weaken.

That gives Cochlear a degree of resilience I like.

There is also a long-term growth story behind the defensive qualities. Ageing populations and greater awareness of hearing loss should continue expanding the number of people who could benefit from treatment.

Cochlear also has a strong record of product development, which helps it keep improving the technology available to patients and healthcare professionals.

A market sell-off could still drag Cochlear shares lower. But I would be comfortable looking through that volatility and sticking with the long-term investment case.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is an ASX share that gives me a different kind of confidence.

This conglomerate’s portfolio includes businesses such as Bunnings, Kmart, Target, Silk Laser, Priceline, and Officeworks, giving the company exposure to categories that remain important to Australian consumers through different parts of the economic cycle.

I particularly like the strength of Bunnings. Its scale, brand recognition, and position in home improvement make it difficult to replicate, while Kmart has built a strong value proposition that can remain relevant when household budgets are under pressure.

Wesfarmers also has a long history of allocating capital across different businesses and industries. That flexibility is valuable during weaker markets. A strong balance sheet and patient management can create opportunities when other companies are forced to pull back.

For me, that makes Wesfarmers the sort of business I would be happy to keep holding even if sentiment towards the broader market turned sharply negative.

Woolworths Group Ltd (ASX: WOW)

Woolworths would be my third ASX share pick.

Grocery spending is one of the more defensive parts of the economy because households still need food and everyday essentials regardless of what markets are doing.

That gives Woolworths a steady demand base through periods when consumers may be cutting back elsewhere.

Its scale also works in its favour. Woolworths operates one of the country’s largest supermarket networks, with the purchasing power, distribution infrastructure, and customer reach that come with that position.

The business still needs to execute well, particularly around pricing, costs, and competition. But if the share market were falling because investors were worried about the economic outlook, Woolworths is the sort of company I would be comfortable continuing to own.

Foolish takeaway

A market downturn would probably send all three share prices lower. That would not automatically make me want to sell them.

What I care about is whether the businesses themselves can keep strengthening while the market works through the turbulence.

Cochlear, Wesfarmers, and Woolworths all give me reasons to believe they could. That is why I would be comfortable owning them before, during, and after the next sell-off.

The post 3 defensive ASX shares I’d buy in a market sell-off appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Wesfarmers. The Motley Fool Australia has recommended Cochlear and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.