Warren Buffett’s Secret Investment For Freefalling Markets

The mainstream media is quick to point out the obvious.

Warren Buffett is a buy and hold investor.

While that is true on the surface, “The Oracle of Omaha” has a little-known short-term investing strategy up his sleeve.

This strategy has led to billions in gains for Berkshire Hathaway over the past several decades.

In April of 1993, Buffett acquired 3 million shares of Coca-Cola (NYSE:KO) with this investment. Within a few months, he was paid $7.8-million cash up front for these shares.

But it’s Buffett’s use of this strategy to cash in on freefalling markets that’s pure genius. Main Street investors are sitting up and taking notice. The current market seems to reach new milestones almost daily. Smart risk-averse investors know the “bull run” can’t last forever.

Now might be the perfect time to take advantage of Buffett’s secret investment. Back in 2008, when the last market turmoil started, this strategy let Buffett make a killing on Burlington Northern – Santa Fe (NYSE:BNI). He bought the company for $44-billion. Since then, he has earned $22-billion on the deal. It all started with this investing strategy.

In fact, Berkshire’s 2008 Letter to shareholders states that the company had $37.1 billion locked up in this investment. That money was spread among four major indices: the S&P 500 in the U.S., the FTSE 100 in the U.K., the Euro Stoxx 50 in Europe and the Nikkei 225 in Japan.

What’s more, the letter states, "We have received $4.9 billion, money we have invested.”

The good news is you don’t have to be Warren Buffett to profit from this strategy.

This investment retains a number of specific benefits beyond stocks. Regular investors can take full advantage of them if they know how. For example, it allows investors the opportunity to make up to 12 times bigger profits than stocks. Exposure and risk can be reduced by up to 92.5% in any market conditions. It’s perfect for betting against falling markets and coming out ahead. Losses are automatically limited to the original investment.

With stocks, on the other hand, the potential for unlimited losses is very real. This investment can bring back positive returns whether stocks go up or down. Even better, it acts as a hedge to protect any portfolio from inevitable market slumps and outright crashes. In addition, it can spin off cash and income for anyone.

The problem is very few regular investors know about it. Well, it’s time they did.
Here at Profits Run -- a small investing education company out of Michigan we’re pulling back the curtain. We’ve released a Free Guide titled Simple Options Trading For Beginners that reveals how regular people can get started with options trading. The report is written in plain English and is easy-to-read. But it will not be available for free forever. To get your copy, simply enter your email address below.