311- Is Doomsday Coming?
b'Warren Buffett is currently sitting on about $150 billion in cash. Could this mean that doomsday\\xa0\\u2014\\xa0or a major market correction \\u2014 is coming?\\n\\nMost of the time, successful investing is a waiting game. Just as there are poor times to sell your stocks, there are poor times to buy them as well. And sitting on cash while you wait for a better opportunity is often one of the best investing decisions that you can make.\\n\\nAs Rule #1 investors, we try to invest in companies that have at least a 50% margin of safety, meaning that there is at least a 50% upside between the company\\u2019s stock price and its true value.\\n\\nWhen valuations are as high as they currently are, though, it becomes difficult to find any quality companies that exhibit this margin of safety.\\n\\nLooking at the Shiller PE ratio, prices have only been this high twice in the past 140 years. The first time they got this high was in 1929. The second time was in 1999. But we might not be here for much longer.\\xa0\\n\\nFollowing the smart money \\u2014\\xa0defined as money from big-time investors who know the market better than anyone \\u2014\\xa0is rarely a bad idea, and right now, these investing gurus aren\\u2019t putting a lot of money into the market. Instead, the majority of the money flowing into the market right now is coming from retail investors.\\n\\nWhile these retail investors are buying stocks faster than ever before, the big investing gurus are sitting on their cash. This alone is a pretty good indication that right now might not be the best time to buy into the market.\\n\\nAs Rule #1 investors, we like to find companies that are solid enough to survive and thrive no matter what the market does. When a major market correction, as the one that is very likely on the horizon drives the price of these companies down, the opportunity for great returns is higher than ever.\\n\\nWill the stock market crash? What are you going to do if it does? Today, Phil and Danielle discuss what investors should look out for in the stock market, and how to prepare for a potential doomsday.\\n\\nThis Stock Market Crash Survival Guide will help you prepare for the next market crash and help you cash in when the market drops: https://bit.ly/3dDUfnF\\nLearn more about your ad choices. Visit megaphone.fm/adchoices'