Here's Warren Buffett's Timeless Advice About Surviving a Stock Market Crash

The stock market continues to soar, with the S&P 500 (SNPINDEX: ^GSPC) reaching a new peak in late January and surging by more than 20% over the past year, as of this writing.

However, between increasing political tension and concerns over the Federal Reserve's interest rate strategy this year, some investors are beginning to brace themselves for future volatility. Nearly 43% of U.S. investors are pessimistic about the market's future, according to a February 2025 survey from the American Association of Individual Investors -- the highest rate in the last 12 months.

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While nobody knows what the rest of the year has in store for the stock market, longtime investor Warren Buffett has some timeless advice for handling periods of uncertainty.

Image source: The Motley Fool.

Embrace the bad news

In 2008, in the thick of the Great Recession, Warren Buffett wrote a piece for The New York Times to help ease Americans' concerns about the future of the stock market.

Buffett explained that despite all of the volatility, he was continuing to invest in stocks. "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors."

He went on to explain that while it's normal to feel nervous about short-term turbulence, solid companies have fantastic long-term potential. "These businesses will indeed suffer earnings hiccups, as they always have," he writes. "But most major companies will be setting new profit records 5, 10 and 20 years from now.

In the years following this piece's publication, the stock market has reached record high after record high. The S&P 500 has surged by a staggering 541% since October 2008. If you had invested $10,000 at that time, you'd have more than $64,000 by today.

^SPX data by YCharts

If a market downturn is on the horizon, the coming months or even years could be rocky. But history has proven time and time again that the market is capable of recovering from even the worst crashes and recessions, and those who stick it out for the long term will reap the biggest rewards.

What you can do right now to prepare

Many investors' first inclination during a downturn is to sell their stocks and get out of the market. However, while it may sound counterintuitive, market slumps are one of the best opportunities to invest more.

As stock prices reach record highs, right now is an incredibly expensive time to buy. If we face a downturn, it can be a fantastic opportunity to load up on quality investments for a fraction of the price.

"Again, in the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank. In short, bad news is an investor's best friend. It lets you buy a slice of America's future at a marked-down price." -- Warren Buffett, 2008

To be clear, it's only wise to invest if you have a solid emergency fund to cover at least three to six months' worth of expenses. That can help further protect your portfolio during a recession. But if you have spare cash to invest, now is the time to start researching stocks and deciding where you might want to buy if stock prices take a turn.

Market volatility can be unnerving, so it's normal to feel worried about the future. But by reframing your outlook and focusing on the silver linings, your portfolio is far more likely to survive whatever the market throws at it.

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Katie Brockman 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.