Warren Buffett Says to Embrace Stock Volatility Because ‘A Tolerance for Short-Term Swings Improves Our Long-Term Prospects’

When markets swing sharply, most investors instinctively seek stability. Berkshire Hathaway (BRK.A) (BRK.B) Chairman and CEO Warren Buffett, however, has frequently argued that price turbulence is not something to be feared but managed. In one of his shareholder communications dating back to 1992, Buffett encapsulated this philosophy by writing that, “We not only accept this volatility but welcome it: A tolerance for short-term swings improves our long-term prospects.” The remark reflects the investment a ...