In this episode of The Australian Investors Podcast analyst Owen Rask and 7Investing adviser Dr Anirban Mahanti explain what to do when the ASX or any stock market crashes.
What was answered:
- How often do stock markets crash?
- About once a year, on average, you might expect it to fall/correct 10% (depending on the market)
- Only 20% of market corrections (i.e. 10% falls) turn into bear markets (see Tony Robbins, Unshakeable)
- Which stocks are best to buy cheap?
- High quality growing stocks (or whatever fits your investment checklist)
Owen’s quick & easy market crash checklist (to get you started)
Owen looks for these 5 things when the market falls:
- Net cash position
- DBNR (see explainer below)
- Aligned management
- Controllable costs (i.e. strong margins)
- Strong growth prospects over 5-10 years
Related video: watch 7Investing’s Dr Anirban Mahanti explain SaaS metrics
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Why on earth would I bother listening to this episode?
The Australian Investors Podcast brings together Australia’s best investors. Weekly episodes by investors, for investors.
In this episode, Owen and Anirban give you a game plan to survive and thrive in the next market crash. Yep, that’s right, by the end of this episode you might actually be looking forward to the next market crash because you’ll have the tools, knowledge and conviction to back yourself.
Date of recording: December 22nd, 2021
