When it comes to getting the best bang for their buck, Warren Buffett is a master. The investment mogul uses recessions and market crashes to invest in top companies, seeing huge returns in the process. But lately, while the rest of the world has been buying up stocks, Buffett was quietly preparing his own portfolio.
Warren Buffett has a saying many are likely familiar with, “Be fearful when others are greedy, and greedy when others are fearful.” Right now, as you can probably tell, the markets are spilling with greed. Shares continue to climb higher and higher, yet here’s Buffett, selling stakes, trimming his portfolio, and buying defensively.
Why? Because Buffett thinks another market crash is on the way.
Market crash practically inevitable
Here’s the thing. A market crash was likely even before the pandemic. Global debt reached a fever pitch. The oil and gas sector slumped even further. There was an inverted yield curve in the United States thanks mainly to the increasing trade wars. Then, of course, came the pandemic sending everything for a loop.