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The stock market is a mercurial beast.
The performance of the stock market is key to that of the U.S. economy at large.
Market crashes can create recessions that may take years to resolve.
Economists have been sounding alarms of astock market crashthat could lead to a recession for a couple years now.
What theyve dreaded could be on the horizon.
Could the recession weve been fearing finally hit heralded by a stock market crash?
Hed Stay Calm
Buffett has always preached the importance of staying calm in economic chaos.
It makes good sense.
You wouldnt want the captain of a ship going haywire when it gets stormy.
And youre the captain of your ship when it comes to your investments.
Buffett didnt freak out during any previous crashes, and he wouldnt freak out ahead of or during another.
Hed scoop up shares in high-value companies that he understands and believes in.
These shares would likely be cheaper than theyd be duringstronger economic times, so hed be getting a bargain.
He would grab his cash reserves and start buying quality companies at a discount, Camberato said.
It must be highlighted that Buffetts strategy would be value-focused.
This could turn into something of a buying spree.
Buffett certainly has the money to see through one heck of a stock shopping spree.
He did that with Bank of America during the 2008 financial crisis.
He structured a deal withwarrants and optionsthat gave him a massive return when the dust settled.
He would probably also increase his stakes in companies he already knows and trusts.
Hed Acquire Entire Businesses
Buffett would seize yet another opportunity in the acquisitions space.
He has the liquidity to make an enormous purchase if the opportunity arises.
In the past, this would likely mean marketable securities purchases.
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