Warren buffet, Charlie Munger on timing the market

Warren Buffett on timing the market

Core belief: Market timing is futile; focus on owning great businesses for the long term.

Key statements

• “I never try to predict the market.” Buffett has repeatedly said that having an opinion about short?term market direction is useless and can interfere with making good business decisions 
• “Charlie and I never have an opinion about the market.” He emphasized this at Berkshire Hathaway shareholder meetings, explaining that if a business is attractive, market forecasts should not stop you from acting 
• “The stock market is a device for transferring money from the impatient to the patient.” This reflects his view that investors lose money by reacting to short?term moves instead of staying invested 
• “Our favorite holding period is forever.” Buffett’s approach prioritizes durability and compounding over entry/exit timing

What Buffett means in practice

• He does not wait for “the right moment” in the market.
• He buys when a business is undervalued relative to its long?term prospects, regardless of headlines or macro fears.
• Volatility is a benefit, not a risk, for disciplined buyers 

Charlie Munger on timing the market

Core belief: Trying to time the market is not just hard—it’s a mistake.

Key statements

• “You can’t avoid bad markets unless you try to time the market, which is a seriously dumb thing to do.” Munger was blunt that downturns are inevitable and timing is not the solution
• “The big money is not in the buying and the selling, but in the waiting.” This is one of his most famous lines, highlighting patience over activity 
• Munger consistently warned that over?trading, forecasts, and clever tactics distract investors from what actually works: owning high?quality businesses and letting time do the work

What Munger means in practice

• Market declines are normal and unavoidable.
• Investors should structure portfolios so they can emotionally and financially survive downturns—not try to dodge them.
• Discipline and temperament matter more than intelligence or prediction skill 

Buffett & Munger’s shared philosophy (in one sentence)

Time in the market beats timing the market.
Buy great businesses at sensible prices, ignore short?term market movements, and let compounding work.

This philosophy has guided Berkshire Hathaway for decades and underpins nearly all of their public commentary on investing