Warren Buffett: 5 Rules For Investing In Stock Market Crashes

Warren Buffett (CEO of Berkshire Hathaway) is the master of value investing during stock market crashes. Now with the S&P500 down over 20% in 2022, many investors like Michael Burry, Ray Dalio and Jamie Dimon are predicting that we're actually at the start of a much larger recession. So with this in mind, let's look at 5 Buffett lessons to apply during market crashes, to improve our portfolio returns.

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★ ★ PROFITFUL ★ ★

★ ★ CONTENTS ★ ★
0:00 The Bull Run Ends
1:17 Never Panic Sell A Good Business
3:20 Seize the Opportunity
5:30 Only Buy What You Can Understand
8:38 Buy Quality Businesses Only
11:50 Always Stay Focused On The Long-Term

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.

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[NewMoneyYouTube]

Thanks for watching guys! What's your favourite Buffett lesson? Let me know! Also for some reason, scammers are being particularly aggressive on this video. Watch out!

[carolynrose]

My portfoliio of $750k is down to $492k, How can I profit from the present market", I mean I've heard of people making upto $250k in couple weeks during this crash and I'd like to know how.

[patriciacarlos]

To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough, we just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable. In my portfolio, I'm noticing more red than green.

[michealwrubell]

Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies

[JaykeTurner]

With the way the market is moving, we'll mostly hold for longer than 2025 to realize profit gain, I think a video on "How to profit from the present market" will be more effective, I mean I've heard of people making up to 250K within few months and I'd like to know how.

[williamskohler]

I sold a couple of homes in the Tampa area for pretty good cash and I'm thinking to just leave it in stocks while waiting for a house crash to happen and as well avoid inflation, but is this really a good time to buy stocks? I hear it's a madhouse right now and I still hear folks are raking in huge 6figure profits by the weeks and I'd love to know how.

[jeantomas]

Nice videos, I'm adding a bunch of stocks to my current holdings for the long run, do you think these stocks are long term worthy, I've set asides $250k to begin and I'd love to avoid as many mistakes as I can.

[melyndaulf]

If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you, prevent inflation from eroding your savings, build generational wealth, and cultivate good habits and financial knowledge, you must be in the market.

[bestgirlie]

crash and bullish market provides equal high-yield potential, it's all about information and strategy application, I've seen folks make huge 7figure profit in a crashing market and pull it off as easily in a bull market, Unequivocally the crash/recession is getting somebody somewhere rich.

[atanacioluna]

Such a powerful, beautiful, and succinct summary, and fun to laugh at ourselves with. Thanks

[VoteLaborOut]

"Time is a friend of a wonderful business but an enemy of a lousy business."

[FrankStajanoExplains]

Warren Buffett is still the best, despite all the naysayers who claim he's lost his touch. You do well to keep going back to his wise principles. Great video, and BTW the editing quality has gone up several notches in the past few months. Thanks for the quality content.

[Skwertydogs]

"You don't make money when you buy, and you don't make money when you sell. You make money when you wait." - Buffett

[tehwicked]

I don't do financial investment, never have. Realizing now I've missed out on a number of opportunities in my life that are... regrettable. I really appreciate your channel and your approach to education for us in the crowd. Be well and take care.

[ramseyb]

I feel the bubble isn't completely popped just yet. When the market was rally few weeks ago, I insisted that bear markets tend to have strong relief rallies, so we wouldn't celebrate until we see a change in the macroeconomic environment. I'm just gonna stick with diversification using the copytrading system and I'm up 24% so far. Just an average Joe here trying to thrive in these volatile markets.

[ElonMuskfirm.dogeinvestment]

When I started I invested as low as $2000 because I was skeptical initially, receiving my profit gave me more confidence to reinvest.

[PhillCurtis]

To think.. most who will watch this wont realise just how important these lessons are...

Another great video.

[clarencehollowell]

Thank you for the video. I've been a Berkshire shareholder since 1999. 460 shares and love how Buffett explains things

[goodbodha]

1. if a company cant easily service their debt with existing cash flows run away from it unless you really truly understand them.
2. If figuring between 2 stocks compare the fundamentals. A business with great prospects but an astronomical p/e ratio is probably not as good a choice as a business with decent prospects and much lower p/e. Think about it. That astronomical p/e is basically built on hype. That hype might be valid or it might not be, but either way it is driving up the price and this diluting the potential gains.
3. When looking at a company step back and ask yourself is the sector looking at a bright future or a struggle. Factor that into your decisions. Mall based retail is a good example. Who in their right mind would invest in ANY mall based retail company at this point. That sector is declining and even the long term survivors of that decline will not be real winners so much as survivors. Big box retail is a different beast.
4. Think about a stock's exposure to the economy. A regional business vs a global has different risks. Global might have issues with exchange rates and supply chain issues. A regional business can be heavily impacted by a seemingly unrelated big business leaving the area.
5. Is a company in a sector that has had historical issues that have decimated the big name companies? Think chemical companies and pollution, or banks and credit derivatives. If you dont understand these companies well enough to be assured they are brewing another event consider avoiding them or diversifying across the sector so the bad apple is a smaller portion of the portfolio.

Last but not least consider looking at the world differently. Ask yourself is a sector going to be a winner or a loser. If a sector is a winner why not buy a bit of all of it? Then you get a piece of all the good action and hopefully cover your losses in a few companies with the wins in many other companies. Or to put it another way avoid sectors that are going to be losers and diversify among winning sectors. None of know who will be the winners in 40 years. We do generally know that some markets will be ho hum steady performers, some will die off, and some will see some amazing growth and amazing failures within the sector.

[Axel...]

Alibaba is very cheap right now, do you have new thoughts on this stock/business?