The 94-year-old Berkshire CEO also revealed that he plans to retire at the end of the year.
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.
The massive cash pile—larger than the GDP of many countries—reflects not just Buffett’s trademark caution but also the challenge of finding investment opportunities in an uncertain economic environment.
Buffett’s comments at the 60th annual meeting in Omaha came as investors continue to digest the ripple effects of President Donald Trump’s sweeping tariff policy, which triggered a market pullback last month and renewed concerns over the possibility of a short-term recession. Trump, for his part, has said the economic turbulence is a necessary transition period, predicting that any pain now will be offset by long-term gains.
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.
By Tom Ozimek
