Warren Buffett's Tips to Prepare for a Stock Market Crash

Warren Buffett isn't one to predict a stock market crash. But there's no doubt he thinks the market is hot, and is positioning Berkshire Hathaway for what may lie ahead. So today we look at 4 ways Warren Buffett is preparing for a stock market crash in 2021.

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DISCLAIMER:
Neither New Money or Brandon van der Kolk are financial advisers. The information provided in this video is for general information only and should not be taken as professional advice. There are risks involved with stock market investing and consumers should not act upon the content or information found here without first seeking advice from an accountant, financial planner, lawyer or other professional. Consumers should always research companies individually and define a strategy before making decisions. Brandon van der Kolk and New Money are not liable for any loss incurred, arising from the use of, or reliance on, the information provided by this video.

[johnnytrentin]

I have $14 ready to go. Which is 68% of my portfolio (which is also down 36%)

[lonewolf-]

Another quote vom Buffet is "Time in the market beats timing the market". How can it make sense to leave 35% of your assets in cash? If there is no crash in 5 years, even with conservative investments you have already lost 35-50% of your return!? For a big investor like Buffet this may make sense, for a private person in my opinion not.

[carolynrose]

I find myself at a crossroads, uncertain whether to liquidate my $250, 000 stock portfolio. I'm seeking advice on the best strategy to capitalize on this current bear market.

[benwagner]

I think the biggest one for a lot of us to remember is to have that ample supply of cash ready for a downturn almost like having a warehouse of ammunition in the event of a war

[phalanx]

PEs are your best barometer, not only for individual stocks but overall market also....eg the long run avg pe of s&p sits around 15....its now at 29....ie 29 years of earnings to get your investment back...get rid of your high pes, and let them fall, as they will, then buy them back when pe is in 10 range...here endeth the lesson

[MassMoment]

More importantly, make sure you pay down high interest debt. Money saved on that interest is a sure bet, and paying it off can reduce your minimum payments, giving more flexibility in the future.

[mofojohnson]

I've also got $140 in cash ready to deploy.
Billions you say, ohhhh

[BryanColliver]

I am not a fan of margin but if we get a 30% dip i will take it all its so cheap on M1 2.25%. I did it last year and duped it all in VTI and SCHD and just paid it back over the next few months it really grew my account much faster then if i had just waited to get the cash

[aaronwilliamson]

A clear summary of Buffett's principals... Good job.

[okieboy]

Your channel is very helpful for new investors like myself. Thanks for the content!

[Empftin]

Been in this for about 25 years. I have always done well holding my shares and buying like mad the lower and lower they go. I know it's different if you are about to retire soon, but if you're not, unless it's the end of the entire US economy for good, not only will it eventually go back up, but it will hit new highs.

[RoofTopFocus]

I think the greatest part of lockdowns was the ability to sit down and analyze companies daily to determine their past and future outlook. Wether it technicals or social influences, it’s been great being able to take time out of the day to build a portfolio that is solid even if we have a massive downturn.

Oddly enough with all of the shortages and supply lines being hemorrhaged, tech has been great. The shift to commodities and staple boring companies will be the next cycle for investing in my opinion. Tech has been a great run up, but it’s most definitely a prosperity investment.

We are nearing a time where bears will reign, as much as I hate to admit it as a long time bull.

[chongmowlim]

Hi, one question, do you think Tesla is a good business and whether their current stock price is over valued?

[samowens]

In such times as this, you’ve got to make sure you consider having a diverse investment strategy. I grew to a 7 figure mark with my portfolio having exposure to different areas of the market, including small and large-caps of the ETF index, international stocks, coins, grade bonds and alternatives like currency markets. as this helps manage the overall risk on my portfolio managed by my FA..it has been a year and half of steady financial growth.

[alireza]

Many thanks for the great videos. Very educative and simply put. Talking about the Market crash, do you think ENPH (Enphase Energy Inc) is overvalued? I own some and am a bit nervous!

[vijayppatel]

many blogs, discuss and video abt market crash, since many years . I knew many usa guys short on Canadian house too. Let face fact after wave of pandamic, market is crossed mount Everest peak and still up trend. If it is drop 5 to 10 percent is nothing compared to its high

[stevend]

Great video, and right before the crash happen in 2022.

[AjitMD]

Asset valuations are important. MSFT took 15 years after 2000 to reach nominal price. Unfortunately just about most stocks are expensive.

[rich]

Is keeping cash not a dangerous game, say I hold cash for 5 years waiting for a crash and I miss out on 250% gains, then the crash happens and it dives 150% then I would still have been up 100%, plus I do not have to time the bottom if I stay in, plus I get to benefit from the bounce from the very bottom if I ride it out and stay in.I just don't like the idea of holding cash., I think long term, long term.Even after every crash eventually it will come back to original levels even if you have to wait 3 or 4 years

[kiritpatel]

thank you right time advice in this frothy market