Warren Buffett, the CEO of Berkshire Hathaway, downplayed recent stock market volatility during the company’s annual meeting on Saturday.
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He said that the market’s recent action should not be characterized as a “huge” move and that “this has not been a dramatic bear market or anything of the sort.”
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Buffett pointed out three occasions over the last six decades when Berkshire Hathaway stock declined by 50%. He noted no fundamental issue with the company during these periods.
I don’t get fearful of things that other people are afraid of in a financial way,” he said.
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“Let’s say Berkshire went down 50% next week, I would regard that as a fantastic opportunity, and it wouldn’t bother me in the least.”
These comments come as investors wonder what’s next for markets after the wild trading amid concerns over President Donald Trump’s contentious tariff policy announced in early April. The market recently notched significant gains as Wall Street clawed back losses seen in the initial sell-off following Trump’s policy unveiling.
Buffett said other periods have been “dramatically different” than the current one facing investors.
Buffett advises staying calm
He reminded investors that the market had climbed over his lifetime while cautioning them to be ready for bouts of troublesome action.
He shared that the Dow Jones Industrial Average sat at 240 on his birthday of Aug. 30, 1930, and fell as low as 41. Despite “hair-curler” events he’s lived through, the blue-chip average finished Friday above 41,300.
If it makes a difference to you whether your stocks are down 15%, you need to get a somewhat different investment philosophy,” Buffett said. “The world is not going to adapt to you. You’re going to have to adapt to the world.”
“People have emotions,” he added. “But you’ve got to check them at the door when you invest.”
