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what would a stock market crash look like what have we been experiencing all right things are getting a bit messy the economy is melting prices are inflating how long would it take to recover the stock market has had large crashes in its history and each time it bounced back the biggest crash is knocking on its door we understand that inflation is taking a toll on the economy but what exactly will come from it with everything from groceries to gas seeing a ridiculous increase in price the recession is most likely the famous investor and chairman and CEO of Berkshire Hathaway Warren Buffett believes that we can still make millions even in this crisis we all know him to be one of the greatest investors of all time he's been a mentor to other great investors this is why many individuals always come to listen to Buffett's words of wisdom regarding wealth creation and even more on the economy and the latest investment strategy G when it comes to hedging against a huge crash Warren Buffett knows the perfect way to make a lot of money during this period And when we're talking about money we're talking about millions of dollars individuals can only do a little to avoid the big crash however the legendary investor Warren Buffett says it's still possible for people to make certain moves to protect against its effects but what are Warren Buffett's steps on making money even when a huge crash comes and that's why we're here in this video we'll be talking about Warren Buffett's steps of making millions from a huge crash so watch this video to the end because it's going to be very interesting Warren Buffett believes that the best time to prepare for a crash is before the crash in fact the biggest crash in the world history is coming and one needs to be very mindful of how one invests as to avoid loss but the good news is that the best time to get rich is during a crash the bad news is that the next crash will be a long one the latest crash still on many invest Esther's Minds is the one caused by the covid-19 pandemic due to this virus Global governments shut down entire economies to slow the spread and this caused an economic shock that rattled investors unlike the other crashes that have been happening this one hit surprisingly fast and recovered just as quickly although the stock market felt 34 percent it regained its peak in only 33 days which happened to be a historically fast turnaround but the one we are experiencing anytime soon will be even worse according to experts as we speak inflation is at 8.5 percent from a year ago it is rather unfortunate that workers wages are not keeping Pace with this inflation period this reason alone made many items more unaffordable Buffett said it is always advisable to know what you're capable of doing and then work on it to get better and make more money in his words he said that the best thing a person can do to protect against financial crisis is to sharpen their skills and focus on being at the top of their field when Warren Buffett spoke at the 2022 Berkshire Hathaway annual shareholders meeting he kept repeating his long-held advice this is definitely true he further stated that the best thing one can really do is to be exceptionally good at a particular skill even in some professions he mentioned professions like lawyers and doctors as Vivid examples you should always note that individuals will always give you some of what they produce in exchange for what you deliver if you know Buffett too well you'll know how important he takes self-investment this means it's essential to invest in yourself as much as you possibly can no matter what it is idleness shouldn't be an option he said anything you do to improve your talents and make yourself more valuable will get paid off in terms of appropriate real purchasing power from learning great skills to improving your knowledge in a wide range of areas all these self-investment strategies will certainly prove one's chance of becoming wealthier during inflation the simple thing to note is that more skills you develop the wealthier you tend to become Buffett said the single most important decision in evaluating a business is pricing power if a business can increase its prices it will indeed have a big Advantage during periods of a huge market crash because it's able to offset its own increasing costs according to Buffett the worst investment to make during a period of inflation is Cash you may want to disagree but in reality it is practically not advisable to hold excess cash during inflation because it will most likely disappear in your hands before you know it Warren Buffett is known to be a lover of holding cash during inflation he believes cash is trash because during times of inflation cash that you have in your savings account or your home will keep getting worthless unlike cash or assets one skills can't be wasted or lost what you have in you cannot be taken from you the fact is that you never know what the next big crash is we really can't say whether it's covid-19 the Great Recession or what we're going through today it's always best to prepare for the unforeseen you just must always have a component of your portfolio prepared for when things get bad the co-founder of upside AI a tanu Argo wall revealed that Warren Buffett's advice to develop your skills is universal it also applies to everyone everywhere in his words he said it's the best kind of asset that usually requires no significant incremental capital investment and you can charge what you want in line with inflation with this in mind it is good to follow a disciplined investment approach through volatility this will probably be one of your best decisions ever and the best thing you can do for your portfolio this is because appropriate asset allocation will definitely go a long way to ensure you have an all-weather portfolio this means you should always consider bulking up your resume by learning a new skill through online resources or a local College although pursuing Advanced degrees can be a bit expensive they can also help you grow your knowledge base and make you an indispensable employee in the near future one of the greatest defenses to being worried about inflation is not having a lot of silly needs in your life Munger told Berkshire shareholders back in 2004 in other words if you haven't created a lot of artificial demand to drown in consumer goods why you have a considerable defense against the vicissitudes of life to help with this consider tracking your expenses through a budgeting app this will help you understand how you're currently spending your money and may help identify problematic spending bursts before they become a habit it's still hard to tell if the current spike in inflation is likely to last or if it will start to recede if you're concerned about the huge economic crash it will be best if you consider taking Buffett's advice you should also own productive assets such as high quality businesses with low Capital needs this is why you need to increase your human capital perfectly and it has a lot to do with your education Financial knowledge professional expertise and even your health Buffett said when this is in your mind you'll receive an absolute gain even when there is a huge crash these steps will indeed help increase your financial opportunities and create more wealth for yourself well that's it for today guys we hope you enjoyed the video if you're optimistic about creating wealth for yourself kindly subscribe to this Channel and give this video a like thanks for watching and we'll see you in the next one
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