When The Skies 'Rain Gold' Warren Buffett Says To Carry A Washtub – Here's Where It's Pouring Right Now

Warren Buffett’s advice is timeless. It’s practical and keeps investors grounded in common sense.

In his 2016 letter to Berkshire Hathaway shareholders, Buffett shared one of his most useful reminders:
 “Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons.”

Seems obvious, right? If gold is pouring from the sky, you grab the biggest bucket you can find and sprint outside.

But Buffett left one thing out: You better be wearing a helmet, too.

Because when it’s raining gold, it’s not gently drifting down from the clouds. It’s coming in fast and hits hard. If you’re not prepared, the very thing you’re chasing could knock you out cold.

Most people don’t even make it out the door. They’re too gripped with fear. Staring out the window, worrying about the storm and overcome with anxiety about the damage. Meanwhile, Buffett and a few investors who’ve learned to spot these moments are out there, arms wrapped around washtubs, grinning ear to ear.

It’s easy to say you’ll be bold when the time comes. But in the moment, fear tends to win. That’s why it’s worth asking right now:

Are the skies starting to darken? Are we approaching another one of those rare downpours?

Because if you’re ready, with your helmet on and your bucket in hand, there are a few places where gold might be falling already.

Don’t miss: A new strategy gaining popularity among institutional investors can provide positive returns even in a down market. Click here to see how individual accredited investors are following this same strategy to earn 15%+ annual returns. 

Energy Stocks – A Storm No One Wants Could Send Oil Prices Surging

Buffett doesn’t make many short-term bets, but when he does, they’re usually backed by very old money and very old oil.

His company, Berkshire Hathaway, holds tens of billions in energy companies like Chevron Corp and Occidental Petroleum Corp. Oil and gas stocks are known for paying an attractive dividend, but they’re also a play on long-term demand and the reality that global energy shocks can still trigger massive upside for oil-heavy portfolios.

Recent escalations in the Middle East, particularly between Iran and Israel, are a reminder of how quickly the global oil supply can tighten. If conflict disrupts exports or infrastructure, crude could spike, and energy stocks with it.

You don’t need to pick individual stocks to get exposure. The Energy Select Sector SPDR Fund XLE holds major names across the oil and gas industry and provides a simple way to position for a surge in energy prices.

RISR – The ETF That Pays You When Interest Rates Don’t Cooperate

Buffett made headlines last year when he dumped large positions in some of his favorite long-term stocks and shifted billions into short-term U.S. Treasuries.

He didn’t see enough upside in overpriced equities, so he went back to collecting interest. Not glamorous. But safe,predictable and liquid.

For retail investors, one fund that captures this same mindset, while going a step further, is the FolioBeyond Alternative Income and Interest Rate Hedge ETF (NYSEArca: RISR).

RISR invests primarily in interest-only mortgage-backed securities (MBS IOs) and U.S. Treasury bonds. These are designed to perform well in a range of interest rate environments, especially when rates are rising or staying stubbornly high.

It’s been quietly paying a yield north of 6%, while also acting as a hedge for rate-sensitive portfolios. And unlike most bond funds, RISR is structured to benefit when rates don’t cooperate.

If interest rates keep investors guessing, this ETF could keep sending out checks.

Home Equity – Collect Gold Without Getting Smashed By a Falling Brick

Now let’s go back to the helmet.

Chasing big returns in volatile markets can be rewarding, but it also comes with real risk. That’s why one of the smartest places to look right now might be an asset that doesn’t move with the stock market at all: home equity.

The U.S. Home Equity Fund I (HEF) from Homeshares offers access to an overlooked corner of the housing market,Home Equity Agreements (HEAs). These are contracts that give investors a share in a home’s future appreciation, without the hassle that comes with owning the property directly.

HEF targets double-digit returns in normal housing conditions, but its real value is in the downside protection. A home would have to lose over 40% of its value before the fund’s position would start to erode. That kind of cushion is rare and it’s built into every deal.

HEF is diversified across strong housing markets, built to ride the long-term trend of U.S. home price appreciation, and structured to protect capital when things get rocky. In other words, you get to chase the gold while wearing a helmet. You can learn more about this strategy and how to invest in home equity by visiting Homeshares. 

Final Thought: Don’t Wait for Sunshine

Buffett’s advice was about more than just being bold. It was about preparation. The people who benefit from market storms aren’t reacting to the moment. They’re already positioned and stocked up on buckets. 

If you think clouds are forming, now’s the time to step outside. Just don’t forget your helmet.

Read next: Wall Street has been quietly buying up equity in owner-occupied homes, and the strategy is kind of genius. Here’s how one company is using it to produce 15%+ annual returns for its investors.

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