Warren Buffett's Top Crash-Survival Strategy Has 98 Years of History Behind It
A Buffett quote from decades ago can guide investors today.
The market has not experienced a full-blown stock market crash in a considerable amount of time. The most recent comparable event is likely the COVID-19 pandemic bear market, which caused the S&P 500 to decline by approximately 34% in a single month. Another market crash may or may not occur soon, but it is certain that such an event will happen at some point in the future.
While investors may not be able to accurately predict the next significant downturn, they can mentally prepare themselves by devising a plan on how to navigate the market's challenges when conditions are favorable. One of the most well-known advisors on this subject is the renowned investor, Warren Buffett. Throughout his career, he has provided numerous tips on this matter.
For instance, during the 2008 financial crisis, Buffett wrote that the key to his trading strategy was a simple rule: "Be fearful when others are greedy, and be greedy when others are fearful."
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