Buy good companies at reasonable prices.

Buffett's strategy for coping with a down market is to approach it as an opportunity to buy good companies at reasonable prices.

Buffett makes concentrated purchases. In a downturn, he buys millions of shares of solid businesses at reasonable prices.

And even in a bear market, although Buffett had billions of dollars in cash to make investments, in his 2009 letter to Berkshire Hathaway shareholders, he declared that cash held beyond the bottom would be eroded by inflation in the recovery.