Stock Portfolio: How to Maintain Your Success When Stock Market Prices Fall


With these investment strategies, you can also invest successfully in bad times.
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Investor legend Warren Buffett advises: “Be greedy when others are fearful, and fearful when others are greedy.”

With this strategy, you can successfully invest in the market, especially in difficult times.

Always be prepared for the next crash, develop an investment strategy and invest in promising and healthy companies.

Stock markets are currently in a bear market. This happens when stocks fall 20 percent or more from their recent highs. This situation is always a double-edged sword for investors. On the other hand, investors are afraid and panicked. On the other hand, there are also new opportunities. One investor knows better than anyone how to use both sides: Warren Buffett.

I’ve always liked Buffett’s advice: “Be greedy when others are fearful and fearful when others are greedy.” He has used this strategy to add more than $50 billion to his net worth since 2008. Today you have the opportunity to use the same principles to achieve financial freedom. Here are three basic principles for buying stocks in a bear market.

1. He accepts that crash is part of the market

Since 1929, there have been more than twenty bear market periods. The best thing you can do as an investor is to plan ahead for these periods. The economy goes through cycles and during your investment journey, you are likely to experience a slump or crash in the market several times.

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Planning for a breakdown does not imply market timing. Paying attention to the headlines, the weekly “experts” incorrectly predict when the next crash will be. But no one knows exactly when the next will come.

But you can always be prepared by:

  • She has a lot of money
  • Build an all-weather wallet
  • Plan ahead with a consultant

2. Have a strategy when buying

You want to win in the good and bad markets. To do this, you must have a strategy before the crash. So always have a plan to buy. Here are some things to think about beforehand.

  • Do you buy individual shares?
  • Are you buying the whole market?
  • What is your purchasing schedule?

For the average investor, the best balanced investment approach is about 90 percent ETFs and 10 percent ETFs. ETFs allow you to buy the entire stock market at a discount without putting all your eggs in one basket. Moonshots of 10 percent are strategic bets on individual stocks, sectors or asset classes.

In order to find the right investment approach, you must be clear about your goals and your risk tolerance. A financial advisor can be a valuable guide.

3. Invests in healthy and promising companies

Buying individual stocks follows Buffett’s strategy of buying promising companies for sale. This makes a promising business:

  • profitability
  • health record
  • Competitive advantage

Find out how to identify these companies before they crash. And think about the 10 potential years when buying. Don’t worry too much about where the price will be in a month or even a year. It aims to achieve long-term growth over ten to twenty years. Finally, remember that you are not alone on your financial journey. Working with a financial advisor to create an “all-weather” plan can relieve a lot of anxiety and even turn panic into opportunity.

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This article was written by Anthony Carlton, a wealth manager at US fintech. The text was translated from English by Klemens Handke, and you can find the original text here.

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