The Middle East conflict has rattled global stock markets, worsened by the mixed messaging from the US government in recent weeks ranging from talks of ending the war to threatening to send Iran back to the stone ages. The extreme volatility has triggered panic-selling as stocks plunged, leaving investors perplexed about whether to invest in companies that are trading cheap, cash out, or hold their assets.
In such a dynamic stock market, investors can seek insights from the trading history of legendary investor Warren Buffett to navigate major economic upheavals. The Oracle of Omaha has seen it all in the past six decades at Berkshire Hathaway and surprisingly stayed invested throughout the worst global events of the 20th century.
Buffett disclosed during Berkshire Hathaway's 1994 annual meeting how he had invested through the scariest moments of the last century. He said he purchased his first stock, called Cities Service Preferred, when he was 11, at the height of World War II in 1942.
Although he didn't hold the stock in the long run, his decision was likely much riskier because times were more uncertain with the war years away from an end. While today's Middle East conflict was escalating rapidly before a two-week truce was announced late Tuesday, its impact on stock markets could be limited compared with World War II.
'I bought my first stock in, probably, April of 1942 when I was 11. And since then, I mean, actually World War II didn't look so good at that time. I mean, the prospects, they really didn't. I mean, you know, we were not doing well in the Pacific. I'm not sure I calculated that into my purchase of my three shares,' Buffett had stated.
'But I mean, just think of all the things that have happened since then, you know? Atomic weapons and major wars, presidents resigning, and all kinds of things... massive inflation at certain times. To give up what you're doing well because of guesses about what's going to happen in some macro way just doesn't make any sense to us,' he added.
Buffett Continues to Influence Trades at Berkshire
Buffett stepped down as CEO at the end of 2025, handing over the baton to Greg Abel, who is implementing Buffett's playbook by expanding Japan bets and resuming share buybacks.
However, Buffett still visits the office every day and continues to influence trading. He said in a recent interview with CNBC that he still makes investment decisions at Berkshire. 'I can still contribute a tiny bit,' Buffett told the media outlet, adding that he purchased 'something new', which he declined to reveal.
Overall, Buffett urges investors to avoid trying to time markets and instead place long-term bets on the US economy. He recommends avoiding background noise and finding great businesses at cheap prices regardless of the macroeconomic landscape.
Disclaimer: Our digital media content is for informational purposes only and does not constitute investment advice. Please conduct your own analysis or seek professional guidance before investing. Remember, investments are subject to market risks, and past performance does not guarantee future results.
