I Always Lean on This Warren Buffett Investing Advice When Markets Are Tumbling

It's a daunting time to invest in the stock market, as major indexes have been plunging in recent weeks. Both the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) dipped into correction territory earlier this month, and while they seem to be on the rebound for right now, there's no shortage of recession concerns.

Investor sentiment has plummeted, with around 60% of U.S. investors admitting to feeling "bearish" about the next six months, according to a March 2025 survey from the American Association of Individual Investors. That's up from around 28% in early November.

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While the future may be uncertain, it can be helpful to hear advice from investors who have experience with tough economic times. Warren Buffett has lived through many recessions in his 94 years, and here's what he has to say about surviving periods of market volatility.

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Bad news is an investor's best friend

If stock prices continue to sink, the short term can be incredibly unnerving. There's always a chance the economy might dip into a recession and your portfolio could potentially lose a substantial amount of value. However, there's a big silver lining: Stocks are also on sale.

In a 2008 article published in The New York Times, Warren Buffett offered hope to millions of investors feeling discouraged and scared amid the Great Recession:

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 say, though, that this can work in many investors' favor:

[I]n 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.

As fear rages again, now is the time to "be greedy," in Buffett's words. The further stock prices slip, the greater those discounts will be. Loading up on these stocks at lower prices will not only save you money in the short term, but it can also set you up for significant gains when the market eventually recovers.

Don't wait for the recovery to buy

Historically, those who invested at the most daunting times were often the ones who reaped the biggest rewards.

For example, say you'd invested in an S&P 500 index fund in January 2008. The market was about a month into the Great Recession, with more than a year to go before prices would begin to rebound. In the near term, your portfolio would have sank, but if you'd simply held your investments for 10 years, you'd have nearly doubled your money by 2018.

^SPX data by YCharts.

Those who continued investing throughout the recession would have seen even larger gains. Between January 2009 and January 2018, for example, the S&P 500 surged by a staggering 196%.

^SPX data by YCharts.

Who would have seen the lowest returns following the Great Recession? Investors who played it safe and waited until the market began to recover to buy.

For instance, say you held off on investing until January 2014. The S&P 500 had just recently reached a new all-time high and didn't appear to be slowing down. Even though it seemed like a safer time to invest, you'd have only earned returns of around 45% by 2018.

^SPX data by YCharts.

While it's often easier said than done, one of the best investing moves you can make in times like these is to continue buying consistently -- even as the market sinks. It may not seem worthwhile in the immediate future if your portfolio plunges, but it will likely pay off down the road.

As Buffett added in the Times article:

Let me be clear on one point: I can't predict the short-term movements of the stock market. I haven't the faintest idea as to whether stocks will be higher or lower a month or a year from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.

Millions of investors are feeling nervous right now, so you're not alone in wondering what the future might hold. No matter where the market is headed, though, embracing the silver lining and staying invested could help supercharge your wealth over time.

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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.