As Wall Street losses hit the headlines, it's good to remember why Warren Buffett doesn't get upset.


FRI, OCT 12, 2018


"I like it" when stocks go down

When the Dow falls 1375 points in two days and then erases a 400-point rebound attempt, there's a whiff of panic in the air.


It's a good time to remember why Warren Buffett thinks it's "good news" when stocks go down.


Buffett was live on CNBC's "Squawk Box" on February 29, 2016. At that time, the Dow was down almost 7% from three months before. Becky Quick told Buffett that people had been "clamoring" to hear from him amid the drop.


Buffett, as usual, wasn't worried.


"Any time stocks go down ... I like it, because I'm a net buyer of stocks. I've been buying stocks ever since I was 11 years old. So when stocks go down, it's good news...


"You can't predict what stocks will do in the short run. But you can predict that American business will do well over time."



You can see his full response in this clip from CNBC's Warren Buffett Archive.







In a new CNBC interview recently added to the archive, Buffett remembers his role in frantic efforts to save Lehman Brothers during the September weekend 10 years ago that sparked the worst economic crisis since the Great Depression.


Not to be missed: the section in which Buffett talks about missing a key proposal because he didn't know how to retrieve voicemail from his cell phone (and he still has the phone.)



Berkshire Hathaway Class A shares fell almost 5% for their biggest one-day drop in seven years during Wednesday's big sell-off, and lost another 3.6% on Thursday.

They closed at $308,000 Thursday, down 4.2% over the previous four weeks, and up 9.6% from one year ago.

Berkshire's Class B shares closed at $205.19, down 4.5% over the previous four weeks, and up 9.5% from one year ago.

The benchmark S&P closed at 2728, down 6.1% over the previous four weeks, and up 6.8% from one year ago.




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