re: Being "recession proof"

quote:

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I hear stories of people who lost millions in the 2008 crash. Where does this money go? And can it be recovered?

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The value of your investment shrinks you don't think of it as money leaving. It is like owning an acre of land then finding out later that it is hazardous land. Your land value disappears because no one wants it

When you have lost a lot of money in the stock market, you have to look at the companies who lost money and ask yourself "is this company still a viable profit making company?" If yes you keep your stock and weather the storm, if not you discard it.

My friend's dad is a big investment broker and he made tens of millions betting on banks to recover when their stock hit near 0 because he believed they wouldn't go bankrupt.


Historically, holding blue chip stocks that have good management and a good balance sheet/business practices will survive recessions as they are not going to go bankrupt