Why Warren Buffett turns to a 19th-century poem when markets slide

Synopsis

Warren Buffett advises investors to stay calm amid market volatility, quoting Kipling’s poem "If." With Nasdaq in correction and recession fears rising, he sees downturns as buying opportunities. Historical data supports patience, as bear markets average under 10 months. Buffett urges disciplined investing and long-term focus.

As global markets reel from mounting uncertainty, billionaire investor Warren Buffett has a timeless piece of advice for investors: “Keep your head when all about you are losing theirs.” The Berkshire Hathaway chairman often turns to Rudyard Kipling’s 1895 poem "If"— as a guide during market downturns, urging investors to remain calm and focused on the long term rather than reacting emotionally to volatility.

Buffett’s wisdom resonates at a time of heightened market turbulence. The Nasdaq Composite has fallen into correction territory, down more than 10% from recent highs, while the S&P 500 teeters on the edge of a similar decline. The Dow Jones Industrial Average has also slipped as fears of an economic slowdown intensify.

Concerns over escalating trade tensions, shifting fiscal policies, and a deteriorating growth outlook have rattled Wall Street. The Federal Reserve Bank of Atlanta’s GDPNow model recently slashed its first-quarter growth forecast from a 2.4% expansion to a 2.8% contraction, fueling speculation about an impending recession.

President Donald Trump acknowledged the uncertainty in a Fox News interview, saying, "There is a period of transition because what we're doing is very big." While he downplayed immediate concerns, investors remain cautious.

Buffett, known for his steadfast approach to investing, has long cautioned that market downturns are unpredictable. "There is simply no telling how far stocks can fall in a short period," he wrote in his 2017 shareholder letter. But rather than panic, he suggests investors heed Kipling’s words:

"If you can keep your head when all about you are losing theirs... If you can wait and not be tired by waiting... If you can trust yourself when all men doubt you... Yours is the Earth and everything that's in it."

Market corrections of 10% or more are common. Since 1980, the S&P 500 has experienced 21 such declines, with an average intra-year drop of 14%, according to Baird Private Wealth Management. But history suggests that long-term investors are rewarded for their patience. Data from Hartford Funds shows that since 1928, bear markets—defined as declines of 20% or more—have lasted an average of just under 10 months.

Buffett sees these downturns as "extraordinary opportunities," emphasizing that disciplined investors can benefit from lower stock prices. His approach echoes another of his well-known statements from 2009: "Big opportunities come infrequently. When it's raining gold, reach for a bucket, not a thimble."

For investors facing turbulent times, Buffett’s advice remains clear: Stay disciplined, ignore the panic, and keep your head.

Also read | Warren Buffett’s guide to market chaos: 3 investing lessons amid tariff tensions

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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