Warren Buffett warns of a ‘Hair Curler’ market: What it means and how investors can prepare

Famed investor Warren Buffett, often referred to as the "Oracle of Omaha," has issued a sober forecast on the future of the stock market, cautioning that a period of extreme volatility lies ahead.

While stepping down as CEO of Berkshire Hathaway, Buffett remains firmly at the helm as chairman and its largest shareholder.

His reputation for foresight was once again on display during Berkshire’s recent annual shareholders' meeting.

Buffett's Warning: A "Hair Curler" Market is Coming

At 94, Buffett continues to command attention when he speaks. At the annual meeting, he addressed recent market swings with calm detachment.

"What has happened in the last 30-45 days, 100 days, whatever this period has been, is really nothing," he remarked, as mentioned in a report by The Motley Fool.

Emphasizing historical context, he recalled how the Dow Jones Industrial Average fell from 381 in 1929 to 42 during the Great Depression—a staggering 89% drop.

However, Buffett didn’t mince words about what could lie ahead. “You will see a period in the next 20 years that will be a hair curler compared to anything you've seen before,” he warned, noting that modern financial systems are so intricate that surprises can arise swiftly and from unexpected corners.

While he stopped short of predicting a crash in 2025, his long-range view is clear: a major downturn is inevitable.

Market History Supports Buffett’s View

Buffett’s somber prediction is not without precedent. Historical data reveals that the S&P 500 has suffered drops of 20% or more from previous peaks nine times since 1950—averaging one such decline every eight years.

More significantly, there has never been a 20-year span without at least one such correction.

These patterns lend credence to Buffett’s assertion that significant market dips are a part of the investment cycle.

What Should Investors Do?

Buffett's outlook may be dire, but it is not without a roadmap for resilience. He advises investors to first shift their mindset.

“Check emotions at the door,” he urged shareholders, as per a report by The Motley Fool.

The market, he explained, is a good place for those with steady temperaments—but can be perilous for those swayed by panic or euphoria.

Another pillar of Buffett’s advice is liquidity. He recommends keeping cash reserves ready to seize opportunities when markets dip.

This is a practice he applies at Berkshire Hathaway—accumulating cash during bullish phases and deploying it when valuations become attractive.

Despite reducing some stock holdings recently, Buffett has not retreated entirely from the market. He continues to purchase select equities, signaling confidence in the long-term potential of fundamentally strong businesses.

FAQs

What did Warren Buffett warn about at the Berkshire Hathaway annual meeting?

Buffett warned that the stock market is likely to experience a highly volatile period within the next 20 years—possibly more dramatic than anything seen in recent history.

Is Buffett predicting a market crash in 2025?

No. While he didn't predict an immediate crash, Buffett emphasized that market corrections are inevitable and could be extreme over the next two decades.