Crisis Investing

Issue 7 / August 2024

Dear Reader,

We see storm clouds gathering. But with that danger come hidden silver linings. That’s the opportunity this newsletter is all about. We want you to be ready for that, so Doug, Matt, and I have put together two essays that might be the most important things you read this year.

The first piece is predicated on our belief that another market crash could be just around the corner. So, we want to arm you with tools—the kind that can turn scary market moments into golden opportunities. We’ll show you just how massive (and profitable) these situations can be, using recent examples like the COVID crash of March 2020. We’ll also walk you through scenarios, using companies from our own portfolio where it makes sense, to show how effective these tools can be. Our goal is for you to never see a market panic the same way again.

The second piece, written by Matt, goes beyond investing. It tackles situations where a financial meltdown might be the least of your worries. Appropriately titled “Plan B,” it shows that being Plan-B prepared is about much more than just getting a second passport or stashing cash offshore. Plan B isn't just a backup plan—it's a mindset for anticipating and tackling risks that are unique to you and your situation. It’s also a way to enhance and protect your Plan A. Matt's essay is a gem that, on top of everything else, includes 5 steps you can take right now to fortify your future. I'm confident it will provide immense value to you and many of our readers.

This issue's a bit meatier than usual, but trust me—it's packed with insights that could change your future. I’m sure you’ll find it both thought-provoking and profitable.

Regards,

Lau Vegys

Riding the Storm: How to Turn Market Crashes into Opportunities

The March-2020 market crash was one for the history books. As the flu-like virus—trivial for everyone except the very old or very sick—spread, panic gripped the markets, leading to a swift and severe downturn. The S&P 500, shorthand for the broader market, plummeted 34% from its February peak to its March low, one of the sharpest drops in history.