Worried About the Stock Market? Here's Warren Buffett's Investing Advice for Getting Through It.

Source Motley_fool

If you're feeling nervous about the future of the stock market, you're far from alone. Around 62% of U.S. investors are pessimistic about the next six months, according to an April 2025 survey from the American Association of Individual Investors -- the highest figure since March 2009.

Recessions risks are also increasing, with J.P. Morgan estimating a 60% probability of a recession by the end of the year -- up from analysts' previous estimate of 40% before the president's latest tariff announcement. S&P Global also increased its recession probability from 25% in March to between 30% and 35% in April.

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With all the negative headlines, it can be discouraging to invest at all right now. But Warren Buffett -- who is no stranger to recessions -- can offer some hopeful advice to those who are struggling.

Close-up shot of Warren Buffett at an event.

Image source: The Motley Fool.

1. Keep buying stocks

When the market is tumbling, buying more stocks is perhaps the last thing on many investors' minds. But according to Warren Buffett, it's a smart way to generate long-term wealth.

"Today, people who hold cash equivalents feel comfortable. They shouldn't," he wrote in a 2008 New York Times article aimed to help ease investors' fears amid the Great Recession. "Equities will almost certainly outperform cash over the next decade, probably by a substantial degree."

The stock market has seen some incredibly difficult times. In the last 25 years alone, we've experienced several record-breaking downturns. The dot-com bubble burst in the early 2000s resulted in one of the longest S&P 500 (SNPINDEX: ^GSPC) bear markets in history. The Great Recession was the most severe financial crisis since the Great Depression. And the plunge in March 2020 was one of the fastest and sharpest market crashes in history.

Yet, despite everything, the S&P 500 has soared by 248% since January 2000.

^SPX Chart

^SPX data by YCharts

In other words, if you'd invested in something as simple as an S&P 500 index fund or ETF in 2000, you'd have more than tripled your money by today -- despite experiencing several of the worst downturns in history.

Stocks are volatile in the short term, but they're also resilient. While cash may seem safer right now, investing in stocks can help supercharge your earnings over time.

2. Be greedy when others are fearful

"A simple rule dictates my buying," Buffett wrote in the Times article. "Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors."

The silver lining of market downturns and recessions is that you can invest in solid stocks while they're essentially on sale. By reframing your thinking, it can make investing a little less daunting.

The S&P 500 itself has fallen by close to 17% since mid-February, with many stocks slipping far more than that. Rather than seeing that as a negative, though, think of it simply as getting a 17% discount. The more the market slips, the more money you can save when investing for the future.

"To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions," Buffett continued in the Times piece. "But fears regarding the long-term prosperity of the nation's many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records five, 10, and 20 years from now."

3. Be a "business picker"

If you're continuing to invest at a discount while stock prices are lower, investing in the right places is critical. When the entire market is tumbling, though, it can be tough to tell which stocks are most likely to pull through.

This is where examining a company's underlying fundamentals is key. Rather than looking just at a business' stock performance, check for things like a strong competitive advantage in its industry and a competent leadership team with a history of guiding the company through tough times.

According to Buffett, this is his and former business partner Charlie Munger's go-to strategy for building wealth in the stock market.

"[W]e own stocks based upon our expectations about their long-term business performance, and not because we view them as vehicles for timely market moves," he wrote in Berkshire Hathaway's 2021 letter to shareholders. "That point is crucial: Charlie and I are not stock pickers; we are business pickers."

Strong businesses will get through even the most difficult recessions and bear markets. By loading up on these stocks now, you can get the best of both words: quality stocks at a discount, and more impressive gains when the market eventually recovers.

The future is daunting right now, and it's normal to feel worried. But the market is no stranger to downturns, even quite severe ones. By taking advantage of the silver lining and staying invested, it may be a little easier to make the most of these challenging times.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, JPMorgan Chase, and S&P Global. The Motley Fool has a disclosure policy.

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