Warren Buffett Isn't Worried About Bear Markets, and You Shouldn't Be, Either. Here's Why.

The S&P 500 has been on fire in recent years, soaring to multiple new records amid excitement about the artificial intelligence (AI) boom. Though stocks across industries have advanced, AI stocks clearly have led the way.

In recent months, though, investors have started to worry about the sustainability of this three-year-old bull market and have questioned whether it will slip into bear territory. Headwinds have multiplied, from geopolitical tensions to rising inflation -- and investors have even questioned whether major investments in AI infrastructure truly will bear as much fruit as expected.

At times of growing uncertainty, it's a great idea to turn to an expert for some wisdom. And in this situation, the best person to seek out is Warren Buffett. The billionaire's investing success at the helm of Berkshire Hathaway for 60 years makes him the ideal person to offer us advice. As it turns out, Buffett isn't at all worried about bear markets, and you shouldn't be either. Here's why.

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Warren Buffett's track record

Let's start with a quick look at Buffett's track record. The investing giant held the role of chief executive officer at Berkshire Hathaway for six decades, and during that time, he led the company to a compounded annual increase of almost 20%. This is compared to about 10% for the S&P 500 over that period. Buffett has always remained true to his investing principles, buying shares of quality companies in businesses that he understands and getting in on these players at reasonable prices.

Buffett hasn't let himself get caught up in trends and doesn't rush to get in on stocks in bull markets and flee during bear markets. Instead, he's invested throughout market environments, a factor that has allowed him to seize opportunities at any moment.

The billionaire stepped down from his CEO role at the start of the year and handed over his chairman position just recently as part of his retirement. But he holds his seat on the board and is now chairman emeritus -- and Buffett continues to participate in investing processes at Berkshire Hathaway.

Buffett shares his thoughts on tough markets

Now, let's consider his thoughts on bear markets. As I mentioned earlier, he isn't afraid of them, and we might even say he welcomes such down times. On many occasions, Buffett has illustrated this with his words, but one particular time stands out.

Back in 2008, during the financial crisis, Buffett wrote an op-ed piece in The New York Times, saying that as the financial world was "a mess," he was doing one thing in particular: buying American stocks.

Why was Buffett doing such a thing during a time of crisis? The answer is simple.

"In short, bad news is an investor's best friend," he wrote in the newspaper. "It lets you buy a slice of America's future at a marked-down price."

At the time, Buffett bought stocks for his personal account, and throughout his career, he has expressed optimism about the long-term prospects of American companies. Since Buffett believes these players will do well over time, he's happy to pick up shares at the more difficult moments, when you can buy them for a bargain.

Buffett's enthusiasm about the American company is backed by historical data. Over time, the S&P 500 has always gone on to rebound after downturns and crashes and has climbed significantly over the long run.

^SPX data by YCharts

This suggests that owning shares of some of its members, the stocks driving the economy, is a good plan -- if we buy when they're down and hold for a number of years. Quality companies have the strength to manage difficult times and advance as the economic and market situations improve.

All of this means that, like Buffett, you shouldn't fear bear markets or market declines. These occasions offer you the opportunity to go bargain hunting for stocks that may score a significant win for your portfolio over the long term.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.