Unmoved By The Market’s Drop
Since the Iran war began in late February, Wall Street has stumbled. The Dow Jones Industrial Average has plunged 5.05%, the S&P 500 dropped 4.31%, and the Nasdaq Composite has fallen 3.48% between Feb. 27 and April 2. Yet, the legendary investor is not rushing to buy the dip.
Waiting For A ‘Big Decline’
Buffett emphasized that a minor market haircut is insufficient to trigger a spending spree from Berkshire’s cash hoard, which currently sits north of $350 billion.
“If they’re five or 6% cheaper… we aren’t in it to make five or 6%,” he explained.
Instead, Buffett remains fiercely patient, waiting for deep value. “If there is a big decline, we will deploy,” he stated.
He stressed that Berkshire buys businesses because they are fundamentally attractive, with plans to hold them indefinitely. “We are not planning to sell them next week or next month, so we want to be right on them.”
Ignoring The Wall Street ‘Casino’
While acknowledging the unpredictability of geopolitical events, Buffett reiterated his strict refusal to time the market.
He warned against speculative behavior, comparing modern trading to a “casino” attached to the “incredible cathedral” of the American economic system.
Rather than chasing modest corrections, Berkshire continues to aggressively buy short-term U.S. Treasury bills. As Buffett waits out the uncertainty, his strategy remains unchanged: keep cash highly liquid, ignore the day-to-day noise, and wait for a generational opportunity to buy.
US Markets Decline In 2026 Amid War
The S&P 500 index has declined 4.02% year-to-date. Similarly, the Nasdaq Composite index was down 5.84%, and the Dow Jones tumbled 3.88% YTD.
Meanwhile, Dow tracker, State Street SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), fell 0.090% to close at $465.06 on Thursday. DIA was up 0.099% in premarket.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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