5 Things Warren Buffett Says To Do Before a Recession Hits

Vance Cariaga  Wed, September 6, 2023

Whispers of a looming recession have been making the rounds for well over a year now, and don’t appear to be going away anytime soon. Despite the resilient economy and low unemployment, a recent column in Forbes still predicted a “mild recession” in late 2023 or 2024.

If that’s the case, get ready to invest in the stock market – but only if you want to follow the lead of Warren Buffett, the mega-billionaire CEO of Berkshire Hathaway. As Buffett famously wrote in a 2008 op-ed for The New York Times: “Be fearful when others are greedy, and be greedy when others are fearful.”

 This essentially means that when others are fearful of investing money — like ahead of or during a recession — you should take advantage by scooping up stocks and other assets at discount prices.

“In short, bad news is an investor’s best friend,” Buffett wrote in the op-ed. “It lets you buy a slice of America’s future at a marked-down price.”

That rule is still as relevant now as it was 15 years ago, during the height of the Great Recession. What you don’t want to do is sit around trying to predict when the economy and stock market will recover because even experts like Buffett can’t do that.

“I haven’t the faintest idea as to whether stocks will be higher or lower a month or a year from now,” Buffett wrote. “What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So, if you wait for the robins, spring will be over.”

Before a recession hits, here are five things Buffett recommends doing.

Build Liquidity

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