It is fair to say that there's been no shortage of fear on the market lately. Trade tensions, volatility, and headlines predicting the next recession have sent many investors running for the sidelines.
But if there's one person who would see today's environment as ripe with opportunity, it is Warren Buffett.
While the Oracle of Omaha doesn't typically invest in the ASX, his investment playbook is universal — and it is perfectly suited to moments like these.
So, if Buffett were eyeing the ASX today, what might he do? Here's what I reckon.
Be greedy when others are fearful
Buffett's most quoted line is simple:
Be fearful when others are greedy and greedy when others are fearful.
Well, fear is in the air right now. The ASX 200 is still down meaningfully from its peak, and some high-quality businesses have fallen even further — not because they're broken, but because sentiment has turned.
If you're a long-term investor, that's your invitation to start buying selectively. Think Lovisa Holdings Ltd (ASX: LOV) or ResMed Inc. (ASX: RMD), which have taken a hit despite having very positive long term outlooks.
Buffett wouldn't panic. He'd look for enduring businesses selling at a discount — and calmly add them to his portfolio.
Focus on quality
Another Buffett quote to think about is:
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
That means filtering out the noise and focusing on moats — the sustainable competitive advantages that keep a business profitable and protected.
Here on the ASX, think of businesses like CSL Ltd (ASX: CSL) with its global leadership in blood plasma products, or TechnologyOne Ltd (ASX: TNE) with decades of sticky government and enterprise software contracts. These aren't speculative punts — they're compounders.
Buffett would want businesses with predictable cash flow, pricing power, and trustworthy management. They might not be the cheapest stocks around, but they're the ones you can buy and hold.
Think in decades
If the market falls 5% tomorrow, most investors would panic. Warren Buffett? He probably wouldn't even notice.
His holding periods often span 20–30 years, and his performance has been built on patience, not prediction.
That's a good reminder for any ASX investor.
Foolish takeaway
Warren Buffett may not be browsing the ASX boards, but his principles can still guide you through turbulent times. Buy quality, ignore the noise, and think long term.
In fact, Buffett said it best when he said:
Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.
