Business News

Buffett Says Recent Market Volatility ‘Really Nothing,’ Urges Investor Calm

Warren Buffett on May 3 urged long-term investors not to be shaken by short-term swings and focus on fundamentals amid recent market volatility.

“What has happened in the last 30, 45 days … is really nothing,” Buffett told shareholders at Berkshire Hathaway’s annual shareholder meeting on May 3 in Omaha, Nebraska. “This is not been a dramatic bear market or anything of the sort.”

Buffett made clear that wild market swings, while unsettling in the moment, are nothing to panic about.

“If it makes a difference to you whether your stocks are down 15 percent or not, you need a somewhat different investment philosophy,” he said. “The world is not going to adapt to you. You’re going to have to adapt to the world.”

He reminded attendees that Berkshire Hathaway’s stock has dropped by 50 percent three times in its history, and each time, the fundamentals of the company remained sound.

“People have emotions,” he said. “But you got to check them at the door when you invest.”

Berkshire Hathaway’s own first-quarter earnings, released on Saturday ahead of the meeting in Omaha, reflected the challenging environment. Operating income fell 14 percent year over year to $9.6 billion, while the company’s cash reserves surged to a record $347.7 billion, up from $334 billion at the end of 2024.

Markets have shown signs of stabilizing. The S&P 500 capped its longest winning streak since 2004 last week, and the Dow Jones Industrial Average rose more than 560 points on Friday.

Private domestic investment jumped by nearly 22 percent—a development economist Stephen Moore described as “rocket fuel for future growth that America needs”—and the Atlanta Federal Reserve currently projects a 1.1 percent rebound in second-quarter gross domestic product (GDP).