You can be on Entrepreneur’s cover!

How to Come Out on Top After a Stock Market Crash The best investors learn from their mistakes and readjust when a crisis occurs.

By Phil Town

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

In this video, Entrepreneur Network partner Phil Town points out a few lessons you can learn from major stock market crashes. Town begins by drawing attention to the quote, "those who do not learn from history are doomed to repeat it."

A handful of stock market crashes have offered many large, dramatic dips for investors to learn their lessons. From the housing market crash in 2008 to Black Tuesday in 1929.

Town's first tip is beware of over-optimism during a bear market. Those who are able to climb out of a financial hole during a crash can benefit even more if they have still have cash on hand. If you're fortunate enough to hold some money when stocks are particularly low-priced, Town says you can purchase stocks with pennies on the dollar with very low risk.

Moreover, Town cautions that the market is emotionally-driven. In this way, the market can be extremely unpredictable. To avoid being taken for a ride from the market, look to always buy companies that are promising and considered trustworthy.

Finally, to avoid becoming totally beholden to a crash, make sure that you have properly researched all your wanted companies. Generally, if you are unlucky enough to encounter a crash, you can rest assured because the market will also recover.

Click play to hear more.

Related: Why Making Easy, Passive Income Is Possible With the Right Approach

Entrepreneur Network is a premium video network providing entertainment, ewitducation and inspiration from successful entrepreneurs and thought leaders. We provide expertise and opportunities to accelerate brand growth and effectively monetize video and audio content distributed across all digital platforms for the business genre.

EN is partnered with hundreds of top YouTube channels in the business vertical. Watch video from our network partners on demand on Roku, Apple TV and the Entrepreneur App available on iOS and Android devices.

Click here to become a part of this growing video network.

Phil Town is an Investment Advisor, Hedge Fund Manager, 2x New York Times Best-Selling Author of Rule #1 & Payback Time, and Ex-Grand Canyon River Rafting Guide. Rule #1 Investing is Warren Buffett style investing, teaching you how to buy businesses on sale, with little risk and 15 percent returns. In fact, Rule #1 investing is practically immune to the ups and downs of the stock market.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

More from Phil Town

How to Find a Stock On Sale That's Right for You

3 Bad Investing Habits You Should Drop Before It's Too Late

Nervous About Investing? Think About Your Money This Way.

How to React When a Recession Is Approaching

Editor's Pick

Business News

From Tom Brady to Kevin O'Leary – See Who Lost Big in the Wake of the FTX Crypto Collapse

The crash exposed an $8 billion hole in FTX's accounts, leaving investors and customers scrambling to recoup their funds.

Business News

Mark Zuckerberg Says This CEO Is the 'Taylor Swift' of Tech

Meta's CEO posed with Nvidia CEO Jensen Huang on Instagram Wednesday.

Business News

This Highly-Debated Piece of Cinematic History Just Sold For Over $700,000 at Auction

The wood panel from "Titanic" is often mistaken as a door. Either way, he couldn't have fit. (Sorry.)

Money & Finance

5 Simple Wealth-Building Tips For This Generation's Forward-Thinkers

Explore practical finance tips for young professionals striving to overcome economic challenges.

Leadership

What We Have to Gain By Talking About Grief and Loss At Work

I lost my husband to cancer during Covid — here's how it changed how I lead at work.