Know That a Bear Market Is Coming Eventually. This Is Warren Buffett's Single Best Piece of Advice for Investors.

Warren Buffett’s view of market downturns is framed around an expectation that a bear market is likely to arrive “eventually,” even if timing cannot be predicted. The article points to multiple catalysts that could raise recession risk, including geopolitical and economic concerns such as tariffs, the war with Iran, volatile oil prices, and inflation that could drive higher interest rates, alongside the role of AI and data centers. It also cites that the long-term average annual gain for the S&P 500 is close to 10%, and notes strong recent performance: six double-digit years in the past seven full years, plus a double-digit gain in 2026 through July 14, excluding dividends. Against that backdrop, the piece highlights Buffett’s saying that “bad news is an investor’s best friend,” arguing that sharp pullbacks can make strong companies’ shares cheaper. It advises keeping cash for potential drops and considering safer instruments for money not needed for five to ten years, while acknowledging pullbacks can last months to years.