At a fireside chat in Omaha, billionaire investor Bill Ackman once gave timeless investing advice to an 11-year-old, explaining why uncertain markets often offer the best buying opportunities.
What Happened: During a Q&A session hosted by Pershing Square and UBS before the Berkshire Hathaway annual meeting in May 2025, a young attendee named Olivia asked Ackman whether tariffs—amid ongoing market volatility—created an opportunity for investment or warranted caution.
Ackman, the CEO of Pershing Square Capital Management, praised the question and delivered a powerful lesson in long-term investing.
"Anytime that something happens in markets that creates uncertainty, generally stocks go down, risk premia go up," he said. "If you wait until the uncertainty goes away, then everything reprices… [and] is much more likely to go back to fair value."
He underscored that periods of maximum uncertainty—whether due to tariffs, COVID-19, or the 2008 financial crisis—often present the best times to deploy capital.
"If you start your compounding at 11, this is an excellent question," Ackman said. "You as an investor should get excited anytime … it gets uncertain, and the clouds come in, the storm is going. That's when you want to have capital to invest."
Why It's Important: There are several high-profile investors who agree with what Ackman said.
Warren Buffett is one such investor who also views market uncertainty as an opportunity rather than a threat. While many investors react to volatility with fear and impulsive decisions, Buffett stays calm and strategic, following his famous advice: "Be fearful when others are greedy, and greedy when others are fearful."
Sir John Templeton, the renowned investor, once said that the time of "maximum pessimism" is the best time to buy, highlighting that the greatest investment opportunities often emerge when fear and uncertainty are at their highest.
Renowned economist and financial historian Peter Bernstein also once underscored the critical role of uncertainty in investing, stating, "The greatest tragedies occur when people forget about uncertainty."
Photo Courtesy: Mizkit on Shutterstock.com
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
