Warren Buffett’s Said This About the Stock Market Before He Left

Warren Buffett was one of the only billionaires to see their wealth increase as markets swung wildly during last year's spring selloff. Jeff Bezos, Mark Zuckerberg, and Elon Musk all lost billions back then, but not Buffett whose net worth crept higher. Why? The majority of his wealth comes from his stake in Berkshire Hathaway (NYSE: BRK.B).

Buffett never invested heavily in volatile AI stocks like Nvidia or Tesla, and he kept Berkshire's balance sheet full of cash. As investors saw in 2008 and 2009, when he has dry powder like this he's often willing to bet big and take a huge position at a discount.

The market may on the precipice of plateauing and undergoing a correction again in 2026. If this happens, you'd want to pay some heed to what Buffett had to say about market volatility.

This slideshow was updated on January 26, 2026, with relevant details.

In his 2016 letter to Berkshire Hathaway shareholders Buffett wrote, “Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons.” These are not empty words. In the last great crisis back in 2008, Buffett used his substantial cash pile to load up on shares of Goldman Sachs, General Electric, and even the now booming EV maker BYD.

“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.” As technologies come and go, the sands of industry shift rapidly. In order to build wealth over decades, it's imperative to find investments that can weather that storm. Buffett's well covered investments in railroads and utilities demonstrate the type of sectors that will exist in 10, 20, and 50 years.

“Price is what you pay. Value is what you get.” Consumers, and investors can easily conflate price with value. But as anyone who has watched shares in a popular stock soar, only to eventually fall back to earth it is important to remember that the value is intrinsic and independent of the sticker price. Some investments can be 'cheap', or 'expensive' or 'fairly valued' based on the price being charged. It's time to start thinking more about value and seeing which are now discounted.

Markets boom and bust as reliably as the sun rise. There are always new investments to be excited about, and ones that have fallen out of favor that are more promising than ever. Buffett characterized this cycle well when he said: “What we learn from history is that people don’t learn from history.”. There are always plenty of times to believe 'this time it's different', but evidence shows the opposite is almost always the case. It pays to understand the investment cycles of the past decades to better know where the ones of today will head. It may save your portfolio.

Investors can tie themselves in knots trying to time the bottom on an industry or stock. Is it better to invest on Monday, or Thursday? Should we wait a month and see what happens? In the long run these questions rarely matter.

Phenomenal returns take time. Not weeks, or months, but years and decades. As Buffett quipped: “Someone’s sitting in the shade today because someone planted a tree a long time ago.”. Trees, like portfolios take time to grow, but first they must be planted. The same goes with an investment, and often the best choice is simply to be more patient as it grows.

“It’s been an ideal period for investors: A climate of fear is their best friend. Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance.”. Fear in the marketplace creates opportunities for the investors who can act decisively. You want to be a buyer when no one else shows up, that's how you get the best prices and avoid a bidding war. Often, building wealth takes courage and conviction when others aren't willing to step up.

“Never invest in a business you cannot understand.”. Said simply, if you do not understand how a business makes money you should not risk your money on it, hoping that it will work out. This is foolish, and a recipe for disaster. Often the simplest businesses are the ones that do the best over decades. Paint, candy, and railroads are all pretty sleepy businesses to learn about. But they can make you rich if you're patient. Just ask Buffett.

“We always live in an uncertain world. What is certain is that the United States will go forward over time.”. Buffett has been a long-time optimist on America. The messy combination of democracy, capitalism, optimism, markets, and all the ups and downs that come with it. But if history is any guide, uncertainty is always present as progress steadily marches forward.