But advised to save himself using the strategy of one of the richest investors in the world, Warren Buffett.
Put cash into stocks of undervalued companies. And precious metals and bitcoins.
The writer cited Buffett as a prime example of how experienced investors prepare for major market downturns – they hold large amounts of cash in anticipation of better opportunities.
Kiyosaki said Buffett, head of investment firm Berkshire Hathaway, typically buys shares of undervalued companies with strong fundamentals and holds for years, even decades. Building large cash reserves will give investors the ability to buy assets on a downturn, during panic sell-offs in the markets, Kiyosaki announced.
He also believes that bitcoin, gold and silver could rise significantly in value as the financial crisis forces investors to look for alternative means of saving. The crisis may redirect investors’ attention to assets that operate outside of traditional financial systems, namely bitcoin and precious metals.
But mistakes are possible
“Cash is not trash during a collapse. Why did Warren Buffett sell stocks and bonds and now keeps billions in cash? Because he keeps his money ready to buy valuable assets after the collapse. Last week I spent millions buying oil wells, gold, silver and bitcoins. I’m sure gold, silver and bitcoin prices will rise after a major collapse. But I could be wrong. While Iran continues to bombard oil tankers in the Strait of Hormuz, oil prices from my Texas wells continue to rise,” Kiyosaki wrote.
