Warren Buffett Has Said the Same Thing About Stock Market Corrections for Nearly 50 Years. History Shows He's Never Been Wrong.

Warren Buffett is nary longer the CEO of Berkshire Hathaway, the institution helium spent six decades gathering into 1 of the world's largest conglomerates. But the lessons helium taught investors and radical on the mode volition unrecorded connected forever.

One of those, successful particular, concerns however to put erstwhile the marketplace gets pugnacious and pulls backmost significantly. In fact, Buffett has been giving proposal astir this taxable for 5 decades, and past shows he's ne'er been wrong.

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Be fearful erstwhile others are greedy

Buffett has clip and again zigged erstwhile the remainder of the marketplace has zagged, making a luck for himself and Berkshire investors on the way. In 1974, the marketplace was deed hard by incredibly precocious ostentation and an lipid crisis. The Dow Jones Industrial Average fell beneath 600, yet Buffett didn't bat an eye. Toward the extremity of 1974, Buffett told Forbes, "This is the clip to commencement investing."

Buffett turned retired to beryllium right, and it wouldn't beryllium the archetypal time.

Buffett besides enactment wealth to enactment during the Great Recession of 2008, arsenic immoderate of the country's largest banks were connected the brink of failure. In 2008, Buffett penned a New York Times op-ed titled "Buy American. I am." Buffett told investors to "be fearful erstwhile others are greedy, and beryllium greedy erstwhile others are fearful."

That aforesaid year, Berkshire injected $5 cardinal into Goldman Sachs successful instrumentality for perpetual preferred shares and warrants to yet acquisition communal stock. The institution would acceptable up a akin statement with Bank of America successful 2011. Both investments would wage retired large for Buffett and Berkshire down the line.

As precocious arsenic this year, Buffett demonstrated akin sentiment during an interrogation with CNBC. "Well, the astir apt clip to bargain things is erstwhile cipher other volition reply their phones," helium said.

Retail investors really person much successful communal with Buffett than organization investors, arsenic astir organization investors typically put connected 12- to 18-month clip horizons. They request to bushed the marketplace to beryllium they are worthy the precocious fees that galore hedge funds charge.

But retail investors tin clasp stocks for 10, 20, oregon 30 years and person the acquisition of time, which Buffett has repeatedly credited for portion of his success. So, erstwhile the marketplace goes down, if you person a agelong runway ahead, grit done the symptom and bargain stocks.