With countless opinions and forecasts swirling around the stock market’s future, it’s easy to feel compelled to form your own outlook—bullish or bearish—to guide your investment strategy. But legendary investor Warren Buffett advises against it.
At the 1994 Berkshire Hathaway Annual Meeting, Buffett made it clear: trying to predict market movements is not just unhelpful—it can be distracting. “Charlie and I never have an opinion about the market because it wouldn’t be any good,” he said. Instead of speculating on what the market might do, Buffett focuses on what he can know: the quality of individual businesses.
He warns that basing investment decisions on market predictions means potentially ignoring solid opportunities simply because of fears about the broader market. “To give up something that you do know and that is profitable for something that you don’t know and won’t know… it just doesn’t make any sense to us,” Buffett explained.
In short, don’t get caught up in trying to guess the market’s next move. Focus instead on identifying great businesses—and let the rest take care of itself.
Hear Buffett’s full explanation
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© 2025 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.