Warren Buffett’s Final Advice: How to Stay Calm When Markets Crash

Warren Buffett, the legendary CEO of Berkshire Hathaway, closed his final annual shareholder meeting with a clear message: ignore short-term market swings and focus on the fundamentals.

“What has happened in the last 30, 45 days ... is really nothing,” Buffett told shareholders, emphasizing that recent volatility is minor compared to the company’s long-term trajectory.

He reminded investors that Berkshire’s stock has dropped by 50% three times, yet always recovered because its core business remained strong. “If it makes a difference to you whether your stocks are down 15 percent or not, you need a somewhat different investment philosophy. The world is not going to adapt to you. You're going to have to adapt to the world,” he advised.

Despite a 14% drop in operating income this quarter, Berkshire’s cash reserves hit a record $347.7 billion—a sum larger than the GDP of many countries. This massive cash pile underscores Buffett’s trademark caution and highlights the challenge of finding worthwhile investments in today’s uncertain environment. The company made no share repurchases this quarter, leaving investors curious about how this “dry powder” will be deployed in the future.

The meeting ended with Buffett’s surprise announcement: he will retire as CEO at the end of 2025, handing the reins to Greg Abel, his long-designated successor. Buffett, 94, will remain Berkshire’s chairman and has no plans to sell any of his shares, reassuring shareholders: “I have absolutely no intention, zero, of selling a single share of Berkshire Hathaway. They will be given away.” Abel, who already oversees Berkshire’s non-insurance businesses, will take over daily operations, while Buffett’s legacy of discipline and patience continues.

Buffett’s parting advice: ignore the noise, stay disciplined, and remember that “the long-term trend is up.”