Warren Buffett Minimizes Concerns About Market Volatility at Berkshire Hathaway Shareholders Meeting: Drawing on 18,000 Trading Days of Investment Experience

In early May 2025, at the Berkshire Hathaway annual shareholders meeting, Chairman Warren Buffett stated that recent market fluctuations are "really no big deal," emphasizing the importance of his long-term investment philosophy and rational approach. Buffett noted that in his investment career spanning over sixty years, he has experienced approximately 18,000 trading days, and the current market fluctuations are trivial compared to past crises. He reiterated that investors should remain calm and pointed out that Berkshire has $348 billion in cash ready for future opportunities.

"This Really Isn't a Big Deal": Buffett's View on Current Market Volatility

At the annual shareholders meeting in Omaha, when asked if the recent market turmoil provided buying opportunities for Berkshire, Buffett firmly dismissed this notion. He stated, "What has happened over the past 30, 45, or even 100 days is really insignificant." He added that the market fluctuations during this period do not amount to a "dramatic" bear market compared to true crises in history.

Buffett pointed out that real market panic is often more severe. He cited the example of the Dow Jones Industrial Average plummeting from 381 points to 42 points in 1929, equivalent to a drop from 100 to 11. He emphasized, "This is not that kind of dramatic bear market."

Investment Philosophy: The Line Between Emotion and Reason

Buffett also reiterated his perspective on investor emotions during the meeting. He said, "People have emotions, but you must set them aside when investing." This statement continues his consistent investment philosophy of remaining calm and rational in the face of market fluctuations.

He further noted that if investors feel uneasy because their stocks drop by 15%, they may need to rethink their investment strategy. "The world won't change for you; you have to adapt to it," he said.

The Accumulation of Sixty Years of Investment Experience

Buffett's views are well-grounded. Since taking over Berkshire Hathaway in 1965, he has experienced countless market ups and downs. According to The Week, from 1964 to 2024, Berkshire's stock price has grown at an average annual rate of nearly 20%, almost double the S&P 500's average annual return of 10.4% during the same period.

During this time, Buffett injected billions into Goldman Sachs and General Electric during the 2008 financial crisis, demonstrating his ability to operate counter-cyclically during market panic. His strategy has always been to wait for price dislocations and act decisively when the market panics.

Cash is King: Berkshire's Capital Deployment Strategy

According to reports from The Motley Fool and Yahoo Finance, Berkshire has consistently been a net seller of stocks over the past 10 quarters, with cumulative sales exceeding $174 billion. This strategy reflects Buffett and his investment team's cautious attitude towards current market valuations.

Nevertheless, Berkshire currently holds about $348 billion in cash and equivalents, positioning itself for potential future price dislocations. Buffett stated at the shareholders meeting, "We make a lot of money because we are not in a hurry to be fully invested at any time."

A Long-Term Perspective for Investors

Buffett reminds investors that market volatility is a given. He said, "In the next 20 years, you will see a market more nerve-wracking than any period you've experienced before." He emphasized that such dramatic market dislocations are cyclical, and historically, after every major correction, the market eventually reaches new highs.

According to CFRA data, since 1946, the U.S. stock market has experienced 14 bear markets, with an average decline of 32%, lasting an average of 13 months from peak to trough, and taking an average of 23 months to return to previous levels. For someone like Buffett, who invests over decades, a two-year recovery period is just a small segment of a long journey.

The Core of Investing: Simplicity and Persistence

Buffett's success doesn't stem from complex financial instruments or short-term operations but from a commitment to value and a belief in simple principles. He once said, "Our goal is simple: be fearful when others are greedy, and be greedy when others are fearful." This statement remains a widely quoted motto of value investing today.

He also pointed out that his success is due to his ability to identify undervalued companies in an era of information asymmetry. Even in today's transparent market, he insists on investing in businesses he understands and holding them for the long term.

Warren Buffett Minimizes Concerns About Market Volatility at Berkshire Hathaway Shareholders Meeting: Drawing on 18,000 Trading Days of Investment Experience

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