Undervalued stocks can present investment opportunities even outside of recessions, due to negative press, leadership changes, new product development, or emerging industry trends not yet recognized by the broader market.
"The second type of opportunity that Warren Buffett likes to capitalize on is a stock opportunity, which is, yeah, you're not in a recession. The economy might be fine, but there are certain companies that are now undervalued where maybe it's beaten up because of something else happening in the economy. Maybe they had bad press. Maybe they had a bad CEO which they just replaced. Maybe now they are creating something new and people don't know about it yet. Maybe it's an industry that's getting a lot more attention that the general market hasn't picked up on yet."