Warren Buffett Stock Market Lessons As Goldman Sachs Warns AI Boom Will Not Last

Warren Buffett has never forecast a crash, but Wall Street’s record run has people revisiting what he says about surviving one. Both the S&P 500 and Nasdaq finished at all-time highs on October 6, powered by tech and AI shares, even as the 10-year Treasury yield pushed past 5.3%, a level not seen in about 24 years. Panmure Liberum has warned that the S&P 500 could slide to 5,000 by late 2027, more than 35% below current levels, though several other firms take a much rosier view. Buffett’s playbook is about endurance. He warns against borrowing to buy shares and has pointed out that Berkshire’s own stock has dropped around 50% more than once, with another such fall certain to come at a time no one can name. His guidance boils down to a long holding period, little or no leverage and no panic selling. In his 1996 letter he went further, suggesting that anyone who expects to bail out during a crash may be better off not owning stocks.