Don’t waste the stock market crash! I’d use Warren Buffett’s tips to buy FTSE 100 shares

I think now could be the right time to buy FTSE 100 (INDEXFTSE:UKX) stocks for the long term.

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The FTSE 100’s market crash over the past couple of months could prove to be another buying opportunity for long-term investors. Since its inception, the FTSE 100 has experienced a number of bear markets, with the previous one being the financial crisis. It has recovered from all of them, which could mean there is investing potential at the present time.

One investor who seems to be able to capitalise on low stock prices during bear markets is Warren Buffett. He invests in high-quality businesses for the long term, and does not listen to market noise. Following those principles could help you take advantage of the FTSE 100’s long-term recovery potential.

Market noise

At the present time, there is a considerable amount of panic among investors. They are understandably concerned about the performance of their portfolios after the FTSE 100’s decline. And since there is currently no end in sight to the coronavirus lockdown, things could get worse before they improve.

Investors were also concerned about the short-term prospects for their portfolios in previous bear markets. While the FTSE 100 did experience further falls following its initial declines, it ultimately recovered from all of its downturns to post new record highs. This outcome may seem unlikely right now, but the track record of the index suggests that it is highly likely over the coming years.

As such, ignoring market noise and investing in stocks could be a sound move. Warren Buffett famously invests while his peers are fearful. Doing so may not yield a high return in the coming months, but could lead to a strong performance from your portfolio in the long term.

Fair valuations

It is tempting at the present time to buy the cheapest stocks you can find ahead of a potential recovery. However, they may be among the riskiest opportunities available. In some cases, they may not even survive the current economic downturn to benefit from a potential recovery.

Warren Buffett has always focused on the best value opportunities that are available. In other words, he aims to buy the best quality companies at fair prices. By considering both price and quality, it is possible to find the most attractive risk/reward opportunities in the FTSE 100. This may improve your returns, and also increase your chances of avoiding major share price declines in the near term.

Moreover, the best businesses may be able to strengthen their market positions at the expense of weaker competitors. This may widen their economic moats, and enable them to enjoy higher returns in the coming years. Such companies may not be the cheapest around at the present time, but they are the ones that savvy investors such as Warren Buffett are most likely to buy. Through following his lead in this area, you could maximise the buying opportunities available today to boost your financial prospects.

RISK WARNING: should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice. The Motley Fool believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Where we promote an affiliate partner’s brokerage products, these are focused on the trading of readily releasable securities.

Peter Stephens 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.

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