Are You Hesitant to Invest in the Stock Market Because of the War in Iran? This Warren Buffett Fact Might Have You Thinking Twice

Source Motley_fool

Key Points

  • Warren Buffett made his first stock purchase during World War II.

  • At the time, there was still significant uncertainty in how the global conflict would end.

  • Today, risk-averse investors can use index funds to track the S&P 500 and reduce risk.

  • 10 stocks we like better than S&P 500 Index ›

The stock market looks shaky these days. The S&P 500 (SNPINDEX: ^GSPC) is down more than 3% since the start of the year, and many top tech stocks that were hot buys in recent years have been struggling in the first few months of 2026. Investors appear to be growing concerned with the market, and the war in Iran may be providing them with even more of a reason to stay on the sidelines.

While there is plenty of uncertainty in the markets, billionaire investor Warren Buffett has experienced it all and remained invested throughout. One fact that may surprise you is when Buffett bought his first stock.

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Warren Buffett in a group of people.

Image source: The Motley Fool.

Buffett's first stock purchase was during World War II

Buffett got started in investing early, at age 11. Cities Service Preferred was the first stock he bought, and that was in 1942 -- in the midst of World War II. While it wouldn't end up being a long-term holding for Buffett, it is nonetheless symbolic of his temperament and focus on stocks rather than economic conditions, politics, or even war.

Back then, there was great uncertainty as to how things would play out. World War II was still multiple years away from coming to an end. Buying a stock at the time may have been considered extremely risky. The war in Iran is a troubling conflict today, but it's not even close to being on the same scale as World War II.

Tracking the S&P 500 can be a good option if you're unsure of what to buy

You may be willing to invest in the stock market, but given the uncertainty and the recent bearishness around many growth stocks, you may not be sure of what to invest in. That's where investing in exchange-traded funds (ETFs) can be a good move to consider. They can spread out your risk across not only a few stocks but dozens and even hundreds or thousands.

Through S&P 500 index funds, you can also track the S&P 500, which gives you exposure to the top stocks on the U.S. markets, enabling you to diversify your position while benefiting from the market's long-term growth. Historically, the S&P 500 has averaged an annual return of 10%

To grow your portfolio, however, the key thing is to remain invested and hold on for the long term. Trying to time the market and get in and out at the right times is incredibly difficult, and it can lead to subpar returns and cause you to miss out on gains along the way. Staying invested and tracking the S&P 500 through an index fund can be a relatively safe option to consider for the long haul.

Should you buy stock in S&P 500 Index right now?

Before you buy stock in S&P 500 Index, consider this:

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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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