Warren Buffett Advises Long-Term Investing Through Market Crashes

The money is made in investments by investing, and by owning good companies for long periods of time, Warren Buffett said in a 2016 CNBC interview. That advice addresses an investing public facing persistent fear and volatility, with CNN’s Fear and Greed Index spending most of the last two months hovering between a level of “fear” and “extreme fear.”

Market Pressures and Portfolio Survival

Investors face multiple economic concerns, including stubborn inflation, a U.S. national debt sitting above $40 trillion, and fears of an artificial intelligence bubble. Despite the S&P 500 rising 13.3% in 2026, those underlying factors could trigger a sudden market crash.

Buffett addressed how to handle such downturns in Berkshire Hathaway’s 1996 shareholder letter, advising that if an investor is not willing to own a stock for ten years, they should not consider owning it for ten minutes. This prep work helps build high-conviction positions that survive market tumbles.

Historical Returns During Bear Markets

Historical records show that missing the market’s best days damages long-term wealth building. A JPMorgan Chase study revealed that investors who missed the 10 best trading days captured returns equal to only 60% of those who stayed fully invested, with seven of those days occurring within 15 days of the 10 worst days.

Data from Hartford Funds shows that 48% of the best days for the S&P 500 between 1996 and 2025 occurred during bear markets. A hypothetical $10,000 investment in the S&P 500 in 1996 grew to $192,167 by the end of 2025, whereas missing the 10 best days reduced that return to $85,490, according to Hartford Funds.

Index Fund Strategies and Long-Term Holding

Buffett advised in a 2017 CNBC interview that most people should buy all the big companies through S&P 500 index funds consistently, rather than trying to pick individual stocks. He wrote to Berkshire Hathaway shareholders in 1989 that his favorite holding period is forever for outstanding businesses.

Historical bear markets typically last less than 10 months with an average 35% loss, while bull markets last around 2.7 years and gain an average of 112%. Berkshire Hathaway itself achieved an overall gain of 5,502,284% from 1964 to 2024 by adhering to long-term ownership of good companies.

Keep buying it [the S&P 500] through thick and thin — and especially through thin.

Warren Buffett