---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/33160865.md"
description: "Hedging is a risk management strategy that involves finding opposite assets to reduce losses from risks in a single category and prevent low-probability events. These assets can be stocks, using stocks to hedge against other stocks, or stocks to hedge against other assets. Take Warren Buffett as an example: in 2023, he bought a lot of Japanese stocks while simultaneously shorting the yen to hedge against the risk of yen depreciation. This is a classic example of a cross-asset hedging strategy."
datetime: "2025-08-20T10:40:15.000Z"
locales:
  - [en](https://longbridge.com/en/topics/33160865.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/33160865.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/33160865.md)
author: "[读尽人间书](https://longbridge.com/en/profiles/13205575.md)"
---

# Hedging is a risk management strategy that involve…


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