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Stressed about the stock market? Rethink your investments, Warren Buffett says: ‘The world is not going to adapt to you'

Warren Buffett and Greg Abel walkthrough the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025.
David A. Grogen | C온라인카지노사이트

At Saturday's , the company's chairman and CEO Warren Buffett fielded a question as to whether the recent shakiness had presented Berkshire with opportunities to buy stock.

Buffett rejected the premise.

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"What has happened in the last 30 to 45 days, 100 days, whatever this period has been, is really nothing," he said.

It hasn't felt like nothing for investors. Uncertainty over inflation, trade wars and President Donald Trump's have resulted in a bouncy market that briefly flirted with bear territory, defined as a drop of 20% from recent highs. As of Tuesday afternoon, the S&P 500 sat about 9% below its February peak.

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Buffett pointed out the sorts of downturns that present real opportunities for investors are quite a bit scarier than what's happening now, reminding the audience in Omaha, Nebraska, that the Dow Jones Industrial average had fallen from 381 points to 42 in September 1929. "That's like going from 100 to 11," he said.

"This has not been a dramatic bear market or anything of the sort," Buffett said. "I've had about 17,000 or 18,000 trading days. There have been plenty of periods that are dramatically different than this."

If what's been going on in the market has you feeling panic, you may need to , Buffett added.

"If it makes a difference to you whether your stocks are down 15% or not, you need to get a somewhat different investment philosophy because the world is not going to adapt to you," he said. "You're going to have to adapt to the world."

'Surprises happen in dramatic ways'

For investors who have been through as many up and down markets as Buffett has, volatility, even extreme bouts of it, is table stakes. And if you plan to invest for a long-term goal, such as retirement, you're likely to come up against periods that make you uncomfortable.

"You will see a period in the next 20 years that will be a 'hair curler' compared to anything you've seen before," Buffett said. "That just happens periodically. The world makes big mistakes, and surprises happen in dramatic ways."

When those dislocations happen, it's worth remembering that the market has, historically, trended upward and reached new highs after each major pullback.

The 14 bear markets since 1946 have come with an average drawdown of 32%, with an average duration of 13 months from the market's peak to its trough, according to data from investing research firm CFRA. From there, it has taken 23 months on average for stocks to .

Try to think about your long-term investments the way Buffett might. What's two years to someone who is buying and holding investments over the course of decades? If you can't maintain an even keel through the market's ups and downs, investing may not be for you, Buffett said.

"I don't mean to sound particularly critical — I know people have emotions, but you've got to check them at the door when you invest," he said.

That's why many financial pros — Buffett included — recommend buying a diversified portfolio and consistently investing, regardless of what the market does over the short term. This strategy, known as , ensures that you buy more shares when stocks are cheap and fewer when they go up in price.

And remember, the kind of chaos that throws markets for a loop happens all the time. Even if things have gotten scary, remember that the market has probably seen worse.

"If you don't think the United States has changed since I was born in 1930, you're not paying attention. We've gone through all kinds of things — great recessions, world wars, the development of the atomic bomb — that we never dreamt of when I was born," Buffett said. "So I would not get discouraged about the fact that we haven't solved every problem that's come along."

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