Warren Buffett says Wall Street is too sensitive, doesnāt think current market volatility is a bi...
Legendary investor Warren Buffett told the crowd in Omaha on Saturday that the stock marketās recent swings arenāt anything worth panicking about.
Speaking during Berkshire Hathawayās annual meeting, Warren said straight up, āWhat has happened in the last 30, 45 days ⦠is really nothing.ā He downplayed the recent volatility thatās shaken up traders and left analysts scrambling for explanations.
Warren reminded investors that Berkshire Hathawayās stock has fallen by 50% three different times in the last sixty years. None of those drops were caused by anything broken inside the business. He said the same thing nowāthereās no actual issue. āThis has not been a dramatic bear market or anything of the sort,ā Warren said. He didnāt flinch once while saying it.
Buffett tells investors to stop freaking out over stocks
According to the meetingās livestream from CNBC, Warren explained that todayās conditions donāt even come close to past crashes. People are acting like the sky is falling, but he said theyāre just being overly emotional.
āIf it makes a difference to you whether your stocks are down 15% or not, you need to get a somewhat different investment philosophy,ā Warren said. āThe world is not going to adapt to you. Youāre going to have to adapt to the world.ā
He gave people a long-term reminder. On his birthday, August 30, 1930, the Dow Jones was sitting at 240. It later dropped as low as 41. But on Friday, it closed over 41,300. Thatās the kind of scale Warren was working with. āPeople have emotions,ā he said. āBut you got to check them at the door when you invest.ā
Investors had been rattled over Donald Trumpās tariff policies, which triggered chaos in the markets last month. The S&P 500 dropped into bear market territory on an intraday basis, meaning it fell more than 20% from a recent high.
But by Friday, it had pushed through and logged its longest winning streak since 2004. Warren said none of that should be taken as anything new or surprising. He pointed out that some earlier downturns were a lot worse.
Buffett slams tariffs and warns about protectionism
Warren also came for Trumpās economic approach. Without saying his name, he called out the White Houseās decision to slap heavy tariffs on imports, calling it a bad strategy.
āTrade should not be a weapon,ā Warren said in front of thousands of shareholders in Omaha. āI do think that the more prosperous the rest of the world becomes, it wonāt be at our expense, the more prosperous weāll become, and the safer weāll feel, and your children will feel someday.ā
He warned that tariffs ācan be an act of warā and said theyāre doing real damage. āJust the attitudes itās brought out,ā he added. He said the U.S. should trade openly and let everyone do what theyāre best at.
āWe should be looking to trade with the rest of the world and we should do what we do best and they should do what they do best.ā
Trumpās government had already slapped 145% tariffs on Chinese imports earlier this year. China hit back with 125% in return. Things got so tense the White House suddenly paused most of the increases for 90 days, except with China, while trying to make deals. Warren didnāt buy into the tough talk.
āItās a big mistake, in my view, when you have seven and a half billion people that donāt like you very well, and you got 300 million that are crowing in some way about how well theyāve done,ā he said. āI donāt think itās right, and I donāt think itās wise.ā
Warren reminded people that the United States started from zero just 250 years ago and became the worldās biggest industrial power. āThereās not been anything like it,ā he said. But now, protectionism could chip away at that position. He didnāt offer a plan. He didnāt sugarcoat. He just gave his view.
Warren Edward Buffett. Source: Warren Buffett Twitter/X
Investors had shown up to the meeting hungry for answers about whatās next. Berkshire controls pieces of a massive mix of American businessesāinsurance, energy, retail, transportation, and more. The GDP had just shown its first contraction since 2022, and everyone wanted Warrenās take.
Berkshireās first-quarter earnings report said that tariffs and global politics have added āconsiderable uncertainty.ā The company said it canāt predict the full damage yet.
Meanwhile, Warren has been offloading stocks nonstop. Heās been selling for ten straight quarters. In 2024, Berkshire dumped more than $134 billion worth of stock. Most of that came from pulling out of Apple and Bank of Americaāthe companyās two biggest holdings.
That selloff left Warren with a record-setting $347 billion in cash by the end of March. He hasnāt said what he plans to do with it. But one thingās clear: heās not chasing the hype. Heās not riding the panic. Heās playing his own game.
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