Warren Buffett's Top Crash-Survival Strategy Has 98 Years of History Behind It
A Buffett quote from decades ago can guide investors today.
Overview
The market hasn't had to deal with an outright stock market crash in a long time. The closest recent comp is probably the COVID-19 pandemic bear that saw the S&P 500 (SNPINDEX: ^GSPC) lose around 34% of its value in just over a month.
The next market crash may or may not come soon. But history has shown that another one will happen eventually. Investors probably won't help themselves by trying to predict the next big decline, but they can prepare mentally by developing a plan for how they will deal with it while market conditions are still good.
Details
When developing such a plan, famed investor Warren Buffett is usually a good person to look to for guidance. Over the years, he has offered multiple bits of advice on just this topic. For example, during the 2008 financial crisis, he wrote that there is one simple rule that guided his trading: "Be fearful when others are greedy and be greedy when others are fearful."
Source
Originally published at www.fool.com.