July 5

The crashing FTSE 100 is full of bargain stocks! Here’s what Warren Buffett would do

first_img Today’s a great time to go shopping for shares, as the crashing FTSE 100 now contains loads of bargain stocks. However, simply rushing around buying the cheapest shares you see is a recipe for disaster. Some companies may struggle even after the coronavirus lockdown eases. Instead, listen to Warren Buffett, the world’s greatest investor.After the stock market crash, you can find bargain stocks all over the FTSE 100, but they need to have recovery potential as well. Before using the bear market to load up your Stocks and Shares ISA, heed Buffett’s wise words.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The first thing you need at times like these is the courage to go shopping for crashing FTSE 100 bargain stocks in the first place. Buffett famously suggested that, at times like these, you need to be “greedy when others are fearful,” but he didn’t stop there.Crashing FTSE 100 opportunityHe also said that: “Someone’s sitting in the shade today because someone planted a tree a long time ago.” Any investment you make today is like planting a tree. We live in uncertain times, as nobody knows how long the lockdown will last (even the government), or how rapidly the economy will recover. Trees take time to grow. You should aim to hold any bargain stocks you buy today for the long-term.Buffett also said: “Price is what you pay. Value is what you get.” This is vital to remember right now. Crashing FTSE 100 shares may look so cheap, but they don’t all offer value.I would be wary of buying cruise operator Carnival, for example, even though many investors hopped on board during last week’s rally. I think it could be a long time before people are willing to book cruises in large numbers. There are better bargain stocks out there.Choose your bargain stocks carefullyI am also wary of airlines, such as easyJet and British Airways owner International Airlines Consolidated Group, as the return to flying will be slow, and hampered by many restrictions. Cheap isn’t everything. Value is.Another Buffett saying applies now: “It’s only when the tide goes out that you discover who’s been swimming naked.”The tide has definitely gone out now, leaving the crashing FTSE 100 on the rocks. Covid-19 gives poorly run companies an easy scapegoat. I’d be wary of buying any company that’s cheap because it was struggling before the crisis struck, as it will find the recovery hard too.Buffett would knowCompanies such as NMC Health, Pearson, and Centrica were the three worst performers on the FTSE 100 last year. The stock market crash hasn’t suddenly made them unmissable bargains.Buffett would want to take advantage of a stock market crash like this one to buy bargain stocks. He wouldn’t buy just anything, though. Harvey Jones | Wednesday, 15th April, 2020 Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Enter Your Email Address Image source: The Motley Fool I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img The crashing FTSE 100 is full of bargain stocks! Here’s what Warren Buffett would do Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Harvey Joneslast_img read more