Warren Buffett’s Best Advice for Dealing With Volatility

From Yahoo Finance: 2025-04-27 12:07:00

Stocks have been extremely volatile in April, with the S&P 500 moving more than one percentage point daily. Uncertainty caused by Trump’s broad tariffs announcement led to market sell-offs, followed by tariff walk-backs. Many foreign investors are pulling out of U.S. securities, weakening the dollar and raising fears of stagflation.

Earnings season is adding to market volatility, with companies hesitant to predict the future due to numerous variables. Warren Buffett advises investors to think long-term during market turbulence. Market fluctuations can present opportunities if investors focus on long-term company health and intrinsic value.

Buffett emphasizes the importance of a margin of safety in stock purchases based on predictability and expertise. Identifying folly in market fluctuations can lead to profitable long-term investments. Investing within one’s circle of competence and maintaining a margin of safety can help navigate market volatility successfully. Buffett has doubled the S&P 500’s performance over 60+ years with this strategy.

Short-term market uncertainty presents opportunities for long-term investors. Buffett advises profiting from market folly and maintaining a margin of safety in stock purchases. Focus on companies within your expertise to capitalize on market fluctuations and secure long-term gains. Buffett’s strategies have consistently outperformed the market over decades.

The Motley Fool’s Stock Advisor team identified the 10 best stocks to buy right now, excluding the S&P 500 Index. Historically, their recommendations have yielded significant returns, outperforming the S&P 500 by a wide margin. Join Stock Advisor for access to their latest top 10 list and potential high returns on investments.



Read more at Yahoo Finance: Warren Buffett’s Best Advice for Dealing With Volatility