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 The 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.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

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:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $533,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,089,028!*

Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of April 7, 2026.

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.
placeholder
Trump Openly Seizes Oil, Threatening to “Control Iran Overnight.” WTI Crude Has Doubled to $115 This Year; Will Oil Prices Face More Variables?On April 6, Trump remarked regarding the Iran issue that he could "control the entire country overnight" and indicated that the deadline for ceasefire negotiations could be tomorrow (the
Author  TradingKey
10 hours ago
On April 6, Trump remarked regarding the Iran issue that he could "control the entire country overnight" and indicated that the deadline for ceasefire negotiations could be tomorrow (the
placeholder
WTI edges higher above $110 as Trump intensifies Iran's infrastructure threats West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $103.60 during the early Asian trading hours on Tuesday.
Author  TradingKey
16 hours ago
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $103.60 during the early Asian trading hours on Tuesday.
placeholder
Crypto Weekly Radar: All eyes on Donald Trump’s ultimatum, US macroeconomic dataCrypto markets begin the week with mixed sentiment, with Bitcoin (BTC) trading above $69,000 following last week’s rebound. Still, markets remain cautious as traders weigh risks stemming from Donald Trump’s renewed threats toward Iran ahead of the ultimatum set for Tuesday.
Author  FXStreet
Yesterday 09: 35
Crypto markets begin the week with mixed sentiment, with Bitcoin (BTC) trading above $69,000 following last week’s rebound. Still, markets remain cautious as traders weigh risks stemming from Donald Trump’s renewed threats toward Iran ahead of the ultimatum set for Tuesday.
placeholder
WTI eases below $103.50 as US, Iran reportedly seeking 45-day ceasefireWest Texas Intermediate (WTI), the US crude oil benchmark, is trading around $103.30 during the early European trading hours on Monday. The WTI price retreats after reports that the United States (US) and Iran are making a push for a 45-day ceasefire. 
Author  FXStreet
Yesterday 09: 07
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $103.30 during the early European trading hours on Monday. The WTI price retreats after reports that the United States (US) and Iran are making a push for a 45-day ceasefire. 
placeholder
Gold under pressure as fears mount, $4,600 support at risk Spot Gold gapped marginally lower at the weekly opening, with the XAU/USD pair battling to retain the $4,600 mark early in the Asian session.
Author  TradingKey
Yesterday 01: 34
Spot Gold gapped marginally lower at the weekly opening, with the XAU/USD pair battling to retain the $4,600 mark early in the Asian session.
goTop
quote