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Warren Buffett (Trades, Portfolio) isn't fazed. While headlines screamed bear market as the S&P 500 (SPY) teetered on the edge last month, the Oracle of Omaha calmly reminded investors this is all part of the game. What has happened in the last 30, 45 days is really nothing, Buffett said at Berkshire Hathaway's (NYSE:BRK.A) (NYSE:BRK.B) annual meeting. He's seen his own stock halved three times over the last six decadesand lived to tell. The message? Volatility isn't a bug in the system. It is the system.
The S&P 500 came within a whisper of a technical bear market in April, driven by tariff fears and geopolitical pressure. President Trump's decision to pause the most aggressive tariffs helped trigger a rebound, and the index has since clawed back more than half of its losses. Still down about 8% from its highs, the market remains on edgebut Buffett sees no reason to panic. This has not been a dramatic bear market or anything of the sort, he said, brushing off the selloff as business as usual.
Buffett's take is a sharp contrast to the fear-driven narratives dominating headlines. While some investors are hunting for exits, he's reminding us that true compounding happens through the noise. Every dip is a test of temperamentand Buffett just gave us the cheat code: zoom out, stay the course, and buy when others flinch.
This article first appeared on GuruFocus.