Warren Buffett’s Advice for Investing During a Downturn

Whether we’ll need his advice is yet uncertain, but billionaire Warren Buffett has a strategy when it comes to investing during a recession.

Here are three tips from Berkshire Hathaway Chief Executive Officer and one of the world’s wealthiest people, worth about $93.4 billion, according to GOBankingRates.

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Long-term investment is your friend:
Don’t worry about the immediate future. “Go ahead and invest, and then observe the stock market over time to see if you should buy more of that company’s stock or sell it,” he has said, according to CNBC.

Buy stocks:
A low market or recession may create a buying market, with chances for a higher return. Buffett likes to buy stocks at low prices and wait patiently, the Harvard Business Review reported. “If the value of a stock dips after you buy it, that means its shares have become less expensive — so buy more of them,” CNBC has quoted Buffett as saying.

Avoid fad stocks:
Focus on solid businesses and fundamentals with healthy overall performance. Stable businesses will be able to handle potential downturns. “We own stocks based upon our expectations about their long-term business performance and not because we view them as vehicles for timely market moves… [We] are not stock-pickers; we are business-pickers,” Buffett wrote in a 2021 letter to Berkshire Hathaway shareholders.