Never Bet Against America.

During this special weekend, we are revisiting Warren Buffett's words of wisdom. He offered plenty of those during his long tenure as head of Berkshire Hathaway.

First, we’ll review Buffett’s 2020 shareholder letter to Berkshire investors, which offers encouraging words about America’s resilience during the Covid-19 pandemic. We will also revisit Buffett's fabled 2008 op-ed article, “Buy American. I Am,” in which he emphasized long-term optimism in America’s future amid the financial crisis when fear dominated the markets. 

Over the past several months, many Americans have been feeling anxious about the future path this nation is charting, both in its economic and political affairs here and abroad. We, as financial advisors, strongly believe it is our role to instill confidence in the long-term economic resilience of this nation. In our mission to do so, we’re relying on Buffett’s wisdom and unwavering optimism in America. Below, we have overlaid key lessons from Buffett’s 2020 shareholder letter and 2008 op-ed.

Excerpts from Buffett’s 2020 shareholder report.

2020 was an unusual year in America by pretty much any standard. As the country faced major challenges navigating the Covid-19 crisis, Buffett had one enduring message: “Never bet against America.”

“Success stories abound throughout America. Since our country’s birth, individuals with an idea, ambition and often just a pittance of capital have succeeded beyond their dreams by creating something new or by improving the customer’s experience with something old. Today, many people forge similar miracles throughout the world, creating a spread of prosperity that benefits all of humanity. In its brief 232 years of existence, however, there has been no incubator for unleashing human potential like America. Despite some severe interruptions, our country’s economic progress has been breathtaking.”

Recent advancements in artificial intelligence are a clear example of America’s enduring spirit of innovation. US companies are at the forefront of this breakthrough, pushing the boundaries of what AI can do in our daily lives, from healthcare to education to business productivity. This drive to innovate, improve, and adapt is what Buffett meant when he praised America as the world’s greatest incubator of human potential.

“Beyond that, we retain our constitutional aspiration of becoming “a more perfect union.” Progress on that front has been slow, uneven and often discouraging. We have, however, moved forward and will continue to do so. Our unwavering conclusion: Never bet against America.”

Depending on who you ask, the state of political affairs has been challenging and far from normal, to put it lightly. The social unrest we see across the country and the discouraging events in our cities and neighborhoods definitely put a dent in the idea of “a more perfect union.” But looking at the social progress over the past hundred years, we can only cite the wise words of Martin Luther King Jr.: “The arc of the moral universe is long, but it bends toward justice.”

Excerpts from Buffett’s 2008 op-ed.

Buffett wrote this letter to the nation in October 2008, as the US stock market crashed and a recession was taking hold. He reminded Americans that while the country has faced what felt like insurmountable crises before, it has always found a way to come back. Economic activity has returned, and the stock market has always rebounded.

“A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.”

“Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”

“You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy.”

The S&P 500 peaked in mid-December 2024, only to decline by about 14% by April 2025 after tariff announcements and concerns about trade wars and economic uncertainty. It was a period when many of you felt uneasy, watching markets drop on headlines of new tariffs and geopolitical tensions. Yet, as history often shows, markets recovered, reminding us that temporary declines are part of investing, not a reason to abandon long-term plans. 

Since the tariff delay in April, the S&P 500 has climbed over 23%, even as challenges like inflation and global conflicts persist. This recovery reinforces a timeless lesson: staying disciplined and maintaining a long-term perspective is what positions investors for growth.

From world wars to financial crises, markets have faced countless challenges yet found ways to recover and grow. Buffett’s words remind us that while fear is natural during uncertain times, betting against America has never been a winning strategy for disciplined investors.

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