While stocks plunge, Berkshire hits record highs—proof that panic isn’t strategy.
Want stability in stormy markets? Following Buffett’s lead may be your best move yet.
Looking for more actionable trade ideas to navigate the current market volatility? Subscribe here to unlock access to ProPicks AI winners.
Donald Trump shocked the markets on Wednesday evening by announcing much higher and broader tariffs than expected.
The U.S. President introduced base tariffs of 10% for most countries around the world, with significantly steeper rates for the nation’s main trading partners.
These announcements sent shockwaves through global markets. At the time of writing, had dropped nearly 3%, while gold surged to new all-time highs.
This sharp market decline adds to an already gloomy few weeks. The had already fallen from its February record – before the tariffs were even announced.
With stocks moving closer toward a bear market (defined as a 20% drop from recent highs), and given the potential impact of these tariffs on an already fragile economy, continued turbulence seems likely in the months ahead.
Faced with this deteriorating environment, now is a good time to reassess your investment strategy—focusing on security and long-term stability.
How Warren Buffett’s Strategy Can Help You Navigate the Market Downturn
This is a particularly timely moment to draw inspiration from Warren Buffett. His company, Berkshire Hathaway (NYSE:), through which he makes his investments, has recently outperformed the broader market.
Berkshire Hathaway reached a new all-time high of $539 during Wednesday’s trading session—up more than 18.6% since the start of the year—while the S&P 500 has fallen over 3.5% in the same period.
Notably, Q1 2025 marked the fourth-strongest quarter in Berkshire’s history in terms of outperformance versus the S&P 500.
Buffett’s success stems largely from his ability to seize opportunities during market crises—buying quality stocks that have been unfairly punished at discounted prices.
Speaking about his contrarian mindset, Buffett once said:
“If they buy a stock and think that if it goes up, it’s wonderful, and if it goes down, it’s bad—we think just the opposite. When it goes down, we love it, because we’ll buy more.”
Buffett is best known for his “value” investing strategy—buying shares in fundamentally strong companies that he believes are undervalued. This approach has been widely adopted and is recognized as one of the safest and most effective long-term strategies.
For investors looking to study Warren Buffett’s portfolio in more detail and apply similar principles during this volatile period, InvestingPro offers several helpful tools. In the Ideas section, subscribers can access positions held by top billionaire investors and hedge funds.
Source: InvestingPro
With just one click, InvestingPro subscribers can add Buffett’s full portfolio (and many others) to a custom watchlist for deeper individual stock analysis.
For those without the time or experience to handpick stocks themselves, InvestingPro provides another solution: the “Best of Buffett” strategy, powered by ProPicks AI.
Each quarter—after Berkshire Hathaway discloses its holdings to the SEC—ProPicks AI selects the 15 best opportunities from Buffett’s portfolio. Over time, this AI has consistently demonstrated the ability to make smart, low-risk choices.
Source: InvestingPro
The “Best of Buffett” strategy is part of a broader suite of over 30 thematic and regional strategies available through InvestingPro. These include the “Top Value Stocks” strategy, which mirrors Buffett-style investing and is updated monthly.
***
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.
