If a Bear Market Is Coming, This Is Warren Buffett's Golden Rule for Preparing Your Investments
The Oracle of Omaha's core investing philosophy is simple, but powerful.
Overview
Investors can learn a lot from Warren Buffett. His time leading Berkshire Hathaway spanned several decades, so he has experienced many different kinds of economic and market environments that aided in his mastery. This gives the Oracle of Omaha perhaps the most comprehensive understanding of how to navigate various situations.
There's a lot of talk these days about a looming bear market. Pessimists think that the S&P 500 index is due for a reset, especially since the benchmark has soared 258% in the past 10 years (as of Sept. 30). There are concerns surrounding equity valuations, inflation, and the state of the economic backdrop.
Details
While no one knows when the next bear market will come, it's always a good idea to figure out how to be ready when one does eventually surprise investors. This is Warren Buffett's golden rule for preparing your portfolio in case stock prices take a turn for the worse.
Source
Originally published at www.fool.com.
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