Warren Buffet, the CEO of Berkshire Hathaway, spoke to these fears in a recent volatile stock market. The famed investor, known as the “Oracle of Omaha,” was answering questions in his company’s annual meeting. Yes, the 94-year-old billionaire calmed those investors. He stressed the need to not overreact, explaining that market ups and downs are just part of the investing process.
Buffett touted that he has the advantage of six decades in the market. During that time the price of Berkshire Hathaway has dropped 50% three different times. His main point was that even with these examples, the market has continued its long-term upward trajectory for all of his life thus far. “What has happened in the last 30, 45 days … is really nothing,” he stated, aiming to downplay the current anxieties surrounding market performance.
Buffett’s point was that the S&P 500 just hit its longest winning streak since 2004. This milestone coincides with Wall Street’s beginning to recover from significant prior declines. The recent tumult in the market he characterized as a blip. So he dismissed it, saying hey that’s just the nature of the investing game, you win some you lose some. “This has not been a dramatic bear market or anything of the sort,” he remarked, indicating that the current situation should be viewed in context.
It’s been a jittery time for investors. Their anxiety comes from worries about President Donald Trump’s unpredictable tariff policy, which has resulted in erratic trading patterns. Buffett warned readers to prepare for stormy seas. He said that market volatility is a natural – and unavoidable – risk in investing.
“For those feeling uneasy about recent downturns, Buffett offered a more philosophical perspective: “If it makes a difference to you whether your stocks are down 15% or not, you need to get a somewhat different investment philosophy. The world is not going to adapt to you. You’re going to have to adapt to the world.”
Buffett’s remarks serve as a reminder that while market fluctuations can be disconcerting, they are often temporary and should not undermine long-term investment strategies. His experience and perspective give investors the ability to take a cool, refreshing drink, rather than a panic-induced belly flop when the market gets choppy.