OMAHA, Neb. — Legendary investor Warren Buffett reassured shareholders on May 3 that recent market turbulence should not alarm long-term investors, emphasizing the importance of staying focused on fundamentals. Speaking at Berkshire Hathaway’s annual meeting in Omaha, the 94-year-old CEO downplayed the significance of recent swings, noting that short-term fluctuations are typical and should not dictate investment decisions.
Buffett characterized the past month’s volatility as unremarkable, stating that the current environment does not resemble a severe bear market. He advised investors to adopt a resilient philosophy, warning that those unsettled by temporary declines might need to reassess their strategies. Reflecting on Berkshire’s history, he highlighted three instances where the company’s stock fell by 50%, yet its underlying value remained intact.
His remarks come amid ongoing market uncertainty fueled by trade tensions and shifting U.S. economic data. Last month, President Donald Trump’s tariff policies contributed to a pullback, though markets have since shown signs of recovery. The S&P 500 recently notched its longest weekly winning streak in nearly two decades, while the Dow Jones Industrial Average surged over 560 points on Friday.
Economic indicators paint a mixed picture. The U.S. economy shrank 0.3% in the first quarter—its first contraction since 2022—driven by trade imbalances and inventory adjustments. However, private domestic investment soared by 22%, a surge economist Stephen Moore called critical for future growth. The Atlanta Federal Reserve projects a modest 1.1% GDP rebound in the second quarter.
Buffett also disclosed plans to retire as CEO at year’s end, naming Vice Chairman Greg Abel as his successor. Abel, tapped four years ago as Buffett’s heir apparent, will take the helm of the conglomerate, marking a historic transition for the Omaha-based firm.
Addressing policy, Buffett advocated for balanced global trade and stressed the need for a cohesive U.S. energy strategy, urging collaboration between government and private industry. His comments contrast with the Trump administration’s aggressive deregulation and fossil fuel expansion under the “drill, baby, drill” initiative.
Berkshire’s quarterly report cautioned that geopolitical risks, including tariffs and supply chain disruptions, could impact its diverse operations. Despite these challenges, Buffett reiterated confidence in adapting to an evolving world, urging investors to leave emotion at the door.
As markets navigate crosscurrents, Buffett’s parting message underscored resilience: “The world is not going to adapt to you. You’re going to have to adapt to the world.”