first_img Image source: Getty Images. Here’s how I’d find cheap shares to buy in a stock market crash Finding cheap shares to buy isn’t difficult at the moment. But choosing wisely is tricky. The coronavirus pandemic continues to plague both individuals and world economies.While UK death rates continue to rise and Covid-19 testing capacity is thin on the ground, uncertainty reins. And as the pandemic continues to spread with no vaccine in sight, the scale of the economic damage being done is not yet clear.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…All this has shaken the UK FTSE indices in recent weeks, but many analysts think there’s worse to come. If this is true, then we may find some of the UK’s best quality companies slipping into bargain territory. Existing shareholders don’t want their portfolios shrinking in value any further. But a crashing market can throw up a great opportunity for those looking to get started in stock market investing.Billionaire investor Warren Buffett has made several fortunes. Each time he found himself in a market crash, he offset any losses by making quality purchases in undervalued companies.Don’t forget to diversify!Warren Buffett’s advice on portfolio diversification can confuse beginners. While most investment advice advocates portfolio diversification, Buffett once said: “Diversification is protection against ignorance. It makes little sense if you know what you are doing.”This is because, if you’ve done your homework and are investing in sectors you understand, random diversification shouldn’t be necessary.However, during a market crash, I think it’s apparent why diversification matters. The sectors most obviously hammered by the virus are airlines, travel and entertainment. If you’d only invested in these three sectors it could wipe your wealth out in one fell swoop. Likewise, if you were solely invested in oil, you’d be in trouble as oil majors sink under the weight of the crashing oil price.I understand Buffett’s viewpoint on diversification. But I think it’s important that beginners don’t put all their eggs in one basket. Many different sectors are easily available for investors to buy, so it’s easy to created a diversified and balanced portfolio. The world’s eye is on pharmaceuticals, for instance, as we wait with bated breath for whispers of a vaccine or miracle drug to crush the coronavirus. Meanwhile, as global tensions rise, defence is a sector I think could be gearing up for future growth. These are both sectors I’d consider adding to a diversified portfolio. Overvalued to undervaluedSome of the UK’s best-loved FTSE 100 companies still have a high price-to-earnings ratio. So consumers may be misplacing their confidence in share prices higher than they’re worth.Sometimes a market correction is necessary to bring overvalued shares back to earth. That means not only to a realistically valued state, but to an undervalued one. At this point, overpriced stocks become cheap shares to buy.I think a market crash is a great time for beginners and seasoned investors to do their homework. Carefully research the companies you’re interested in. Then you can confidently buy shares in quality businesses when they’re at bargain prices. After that, just wait for confidence (and dividends) to return and watch their prices rise.  Kirsteen Mackay | Saturday, 11th April, 2020 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. Enter Your Email Address 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.center_img Simply click below to discover how you can take advantage of this. 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. 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. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares See all posts by Kirsteen Mackaylast_img

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