Chapter 53 Chapter 10 How Enterprises Cope with the Financial Crisis

●You don't think about making money during a depression ●You have to hedge.In the bubble period, how to invest and earn money, in the depression period, you must be very conservative. First of all, I would like to tell you a new concept: you should not think about making money during the recession.I met a lot of people today who asked me, "Professor Lang, can we buy the bottom?" I said that you must not think about this problem. You should be thankful that you can keep your capital during the depression.There is a buddy that everyone is familiar with who is also buying bottoms, and he is called Comrade Buffett.We have talked about him before, he started to buy bottoms in September 2008, just like us stockholders, the more bottoms he buys, the lower he gets.

He lost a lot in October 2008, losing 16.3 billion US dollars. I think he is still losing money now because he can't buy bottoms.Why?The investment strategy during the recession is completely different. What you have to do during the depression is hedging investment.So what is hedging investment?For example, if you buy gold worth $100, you must buy $100.Because the hedge between gold and the dollar is high, why?Guaranteeing not to lose money is the goal. If you want to make money at this time, it will be difficult for you to make money.You have to hedge.How to invest and earn money during the bubble period should be very conservative during the depression period. Taking cash as an example, if you keep different currencies for hedging, you can guarantee that you will not lose money. This is the principle.