What to do if the stock market crashes
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In Warren Buffett's latest letter to Berkshire Hathaway 's NYSE: BRK-B shareholders, the Oracle of Omaha offered his long-term predictions for American stocks as well as some excellent advice that investors such as you and I can use to profit when things go badly. Simply put, Buffett has no worries about the long-term prospects of American business, and therefore the stock market's performance.
He also remarked that "American business -- and consequently a basket of stocks -- is virtually certain to be worth far more in the years ahead. Now, this doesn't mean you should simply invest in whatever company is making headlines today and forget about it. It's always important to stay up to date with the current state of all of your stock investments.
And not all companies are created equal -- Buffett suggests that investors should stick with a "collection of large, conservatively financed American businesses" for the best chances of long-term success. Here's the key point: Although Buffett is convinced that investment gains will be substantial, he also says they will be "totally random as to timing.
What Do I Do With My Stocks If The Market Crashes? Part 1 | Seeking Alpha
Big market drops can and almost certainly will happen. As Buffett puts it, "[T]he years ahead will occasionally deliver major market declines -- even panics -- that will affect virtually all stocks.
No one can tell you when these traumas will occur. Buffett wants long-term investors to remember two key points for when the market crashes, or if there's an all-out panic. To illustrate this point, look at some of the investments Buffett made in the wake of the last market panic -- the financial crisis.
If a Market Crash Is Coming, Here's What to Do With Your Stocks, Bonds and Mutual Funds - TheStreet
The point is, the best thing you can do if the market crashes in -- or any other year, for that matter -- is to keep a cool head and remember the ultimate goal -- to buy solid American companies at fair or downright cheap prices.
And in market crashes, you'll have plenty of opportunities to do just that.
What to Do After a Stock Market Crash » Money Boss
Matthew Frankel owns shares of Berkshire Hathaway B shares and Goldman Sachs. The Motley Fool owns shares of and recommends Berkshire Hathaway B shares. The Motley Fool has a disclosure policy.
Matt brought his love of teaching and investing to the Fool in in order to help people invest better. Matt specializes in writing about the best opportunities in bank stocks, REITs, and personal finance, but loves any investment at the right price. Follow me on Twitter to keep up with all of the best financial coverage! Skip to main content The Motley Fool Fool.
What I Plan to Do When the Market Crashes -- The Motley Fool
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