5 Investment Tips from Warren Buffett Amid the Threat of a 2023 Recession

TIME.CO, Jakarta – A reliable investor who is also included in the list of the richest people in the world Warren Buffet revealed a series of investment tips in the midst of threats recession which is said to happen in 2023.

The man known as the Oracle of Omaha because of his investment prowess has managed to amass a personal fortune of more than 100 billion US dollars or about Rp 1.560 trillion. (assuming an exchange rate of 15,603 Rp. per US dollar).

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Indeed, during a recession, Warren Buffett still ventured into investing. For Buffett, recessions are one of the best times to look for opportunities investment.

“Bad news is an investor’s best friend. This allows you to buy part of the future at a lower price,” Buffett said, quoted by Forbes on Saturday, Dec. 17, 2022.

Here are five investment tips ahead of the 2023 recession from Warren Buffett:

1. Invest for the long term

Buffett always advises investors to focus on long-term investments. He also stressed that investors should avoid investing at high costs. Investors who simply sit around monitoring the huge pool of assets that have been bought, he argues, are likely to succeed.

“Companies are going to really experience income ups and downs, as they always do. However, most large companies will set new profit records in 5, 10 and 20 years,” Buffett said.

He then gave the example of the Coca-Cola business trip. In 2007, before the Great Recession hit, Coca-Cola shares peaked at just $32 a share. Then, in March 2009, the price fell to $19.55 a share.

At that time, investor sentiment changed immediately. A number of companies feared that people were starting to fear their economic future. As a result, they overcome this by giving gifts to loyal investors who still buy their shares.

If you reflect on the current conditions, the company has recovered. Coke shares are now at just over $63 a share. This is one of several case examples that will strengthen your beliefs about investing during a recession.

2. Optimistic about good results

After studying the example of Coca-Cola, you can be more optimistic. Buffett suggests that investor mindsets should remain in positive territory. He asked investors to remain confident that the invested capital will produce good results.

This point is in line with the key that Buffett always instills. Because it always encourages trust.

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