In 2023, we face the biggest recession and economic downturn that we’ve seen in a decade. Over the past 12 months, the stock market has crashed, and it’s leaving investors pondering how to invest right now. Today we look at Warren Buffett disciple Mohnish Pabrai, and his opinions on how value investors can make money while investing during high inflation, rising interest rates, and a weakening economy.
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★ ★ CONTENTS ★ ★
0:00 Taking Advantage of the 2023 Economy
1:05 The Secret to Finding Great Stocks During Recessions
2:45 Coke Less Popular Than Pepsi?
4:20 Big Bad Brand Moats
5:10 Remember… No Moat is Forever
7:05 Our Biggest Advantage
9:22 Why The Index Always Wins
10:35 The Secret to Buying Stocks Cheap
12:00 Untapping the Long-Term Potential
14:13 The Not-So-Secret Formula
DISCLAIMER:
Neither New Money or Brandon van der Kolk are financial advisers. The information provided in this video is for general information only and should not be taken as professional advice. There are risks involved with stock market investing and consumers should not act upon the content or information found here without first seeking advice from an accountant, financial planner, lawyer or other professional. Consumers should always research companies individually and define a strategy before making decisions. Brandon van der Kolk and New Money are not liable for any loss incurred, arising from the use of, or reliance on, the information provided by this video.
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BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
Title: Making the Most of the 2023 Recession: Strategies to Build Sustainable Wealth
Introduction
As economic uncertainties loom, the prospect of a recession can be unsettling. However, innovative and forward-thinking individuals know that economic downturns often present opportunities for exponential growth. By adopting a proactive mindset and implementing strategic financial planning, it’s possible to leverage the 2023 recession to build wealth and secure a prosperous future. So, let’s dive into some effective strategies to capitalize on the economic challenges and pave your path to financial success.
1. Invest in recession-resistant industries
During a recession, certain industries tend to fare better than others. To make the most of the 2023 recession, consider investing in sectors that are less impacted by economic downturns. Healthcare, utilities, and essential goods such as food and beverages are examples of industries that typically exhibit resilience during turbulent times. By investing in recession-resistant industries, you can safeguard your capital and potentially reap substantial returns.
2. Embrace a contrarian investment approach
In times of economic uncertainty, many investors tend to panic and withdraw their investments. However, successful wealth builders understand the value of a contrarian approach. Rather than succumbing to fear, this strategy involves investing in undervalued assets when others are selling. During recessions, the stock market often experiences significant declines, presenting opportunities to purchase high-quality stocks at discounted prices. By maintaining a long-term perspective and investing in undervalued assets, you can position yourself to profit when the markets recover.
3. Build an emergency fund and reduce debt
Building wealth requires a solid financial foundation. In preparation for the 2023 recession, focus on creating an emergency fund that covers at least six to twelve months’ worth of living expenses. By having a cushion to fall back on during tough times, you’ll be better able to weather financial uncertainties and avoid making impulsive decisions driven by desperation.
Additionally, reducing debt should be a priority, as it will enable you to free up more resources for future investments. Devise a debt repayment plan and prioritize high-interest debts, such as credit cards. By eliminating or reducing debt, you’ll strengthen your financial position and have more disposable income to invest during the recession.
4. Seek out distressed assets
During a recession, distressed assets often become available at significantly reduced prices. Real estate, for instance, tends to be impacted during economic downturns. As property prices decline, opportunities arise to purchase properties below market value. With a thorough analysis of the potential risks and rewards, investing in distressed properties can yield substantial profits when the economy bounces back. However, it’s crucial to thoroughly research and consult with experts in the field before venturing into this strategy.
5. Invest in personal and professional development
Amidst the challenges of a recession, it’s essential not to neglect investing in yourself. Enhancing your skills, acquiring new knowledge, and expanding your network can significantly contribute to your long-term financial success. Use this time to take courses, attend workshops, or explore additional certifications that can boost your earning potential or open new career opportunities. Remember, personal and professional development is an investment that pays dividends throughout your lifetime.
Conclusion
Navigating a recession can be intimidating, but it’s important to remember that opportunities abound during economic downturns. By adopting a proactive mindset, investing wisely, reducing debt, and nurturing personal and professional growth, the 2023 recession can become a stepping stone towards building enduring wealth. Embrace the challenges, stay informed, and position yourself strategically to maximize your financial gains during these uncertain times.
Thanks for watching everyone! We love to see all the support, and it definitely doesn't go unnoticed! Cheers, B
High Inlfation? This is why they had and still have so much cash on the sideline? There is no such a thing as Inflation. It is a myth, something that everyone believes. Plebs will always be wrong. They think they are safe from "inflation", they buy into bitcoin and gold and like in 2020 and every single other DEflationary crash, their "safe havens" got crashed down into the floor and they had no money to buy into the greatest opportunity of their decade… stop running with the crowd. And stop thinking that you are smarter than most people only because you watch finance videos (that everyone else is watching too…).
The current market/economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
To obtain financial freedom, one needs to be a business owner, an investor, or both, generating passive income, particularly on a monthly basis
The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stocck portfolio, what’s the best way to take advantage of this bear market?
I started investing when I was 55 mostly through sweat equity. I just turned 60 and this last month was the first time that my passive income broke $100,000 for the month. This is solid advice! DO IT
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
I find myself at a crossroad due to the uncertain economic future, uncertain whether to liquidate my $150,000 stock portfolio or not, especially as some stocks are rapidly recovering and people are making money. . I'm seeking advice on the best strategy to capitalize on this current market.
Now with the recent economy ,To get financial FREEDOM you have to be making money while you’re asleep
It'd be great to know ways to make the best out of these crashing market, I mean I've heard of people that netted hundreds of thousands during these times, someone I listened to on a podcast earned over $250K in less than a month, what's the strategy?
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same markt raking in over $200k gains with months, I'm really just confused at this point.
The market is out of control, and banks are failing one by one. Could there be any potential in the stock market for a boomer like me? I am working on an approximate estimate of $3M for retirement.
With the ongoing economic challenges on a global scale, it's wise for individuals to prioritize diversifying their income streams, ones that do not rely on government support. This is an opportune time to explore investments in assets like gold, silver, and digital currencies such as BTC, ETH, and XRP. Hailey Gassmann's outstanding proficiency in these domains is truly commendable.
Coool. Trying too look up new ideas that are better than the broken late stage capitalism we live in… "Here's how you can take advantage and make everything even worse!"
Why is 90./. Of comments are scams with big number of fake likes ?
Retired at 55 several years ago. More time with my wife. 3-5 trips to the gym each week that I couldn’t do while working. Way less stress. More time for hobbies. Cycled 5,000 miles my 1st year of retirement. Joined a golf league that work travel had prevented. Actually have seen our net worth INCREASE nearly each year in retirement, thanks to no debt and years of dedicated investing with my FA Olivia Rene Reyes. Able to help my elderly mom more. Way more time spent outdoors. Life is good!
I used to believe that everyone loses during a recession, but some make millions. Similarly, I thought everyone went out of business in the Great Depression, but some started new ventures. In short, tough times bring losses for some and profits for others, all rooted in the right mindset. Now, I've saved $220k for the future, even though I'm a complete beginner.
Starting early is simple. The best way of getting ahead to build wealth, investing remains a priority. I learnt from my last year’s experience, I was able to build a suitable life because I invested early ahead this time…..