The S&P 500 has seen a decline of around 3% this year, even dropping more than 19% from its peak at one point.
For Warren Buffett, the market’s turbulence this year hasn’t been particularly noteworthy.
“When I look back at what’s happened in the last 30, 45, or even 100 days, there really isn’t much to say,” Buffett remarked during the Berkshire Hathaway Annual Meeting on Saturday. “It hasn’t been a dramatic bear market or anything.”
He noted that in Berkshire’s history, there have been three occasions where the stock has plummeted by 50%. However, this year, those stocks have risen by 19% since January, closing at new highs just last Friday.
Recently, stocks have taken some wild turns, especially as presidential tax policies came to the forefront following a surge to record highs after the election.
These policies have shifted over time, and this week’s market rebound suggests that the dire predictions that surfaced after Trump’s “liberation day” announcement have faded. By the end of Friday, the S&P 500 had regained all the losses incurred following the president’s announcement on April 2.
Buffett added two pieces of investment wisdom while reflecting on this year’s relatively uneventful decline.
First, he said, incredible events happen both in the world and within the stock market. If you find yourself getting excited when everything looks rosy and scared when things turn bleak, Buffett cautioned, then the stock market might not be the best fit for you.
If the shifting landscape is what alters your goals as an investor, he suggested, then perhaps it’s time to reassess your approach.
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