No matter what's happening in the markets, investors turn to Warren Buffett for advice. But when the stock market turns sour and investors get nervous, his advice can help people stay calm and focused on the long game.

Buffett doesn't typically address what's happening in the microenvironment, even when there's turmoil, although he did recently address the tariff situation. He has been through many market ups and downs over his 60-year tenure at the helm of Berkshire Hathaway (BRK.A -0.16%) (BRK.B 0.11%), and his standard refrain when he does provide commentary is that he believes in the American story and the market's tendency to bounce back better.

He usually provides commentary twice a year: in his annual shareholder letter, which is released at the end of February, and at Berkshire's annual meeting, which is taking place this year on May 3. Although many of the nuggets of wisdom Buffett is known for come from the shareholder letters, he answers questions from shareholders at the annual meeting.

So this weekend, investors are likely to hear some good questions and answers about Buffett's thoughts on the economy, tariffs, and the market. Here's what to expect, based on his recent trading activity and what he thinks about tariffs.

What's happening at Berkshire Hathaway

Berkshire has made its own news over the past few months, as its cash reserves have reached all-time highs and continue to grow. As of the end of 2024, its cash holdings, mostly in the form of U.S. Treasury bills, were at $334 billion. There have been many theories about why the company has been hoarding cash. It's been a net seller of stocks for the past nine quarters.

And if you know anything about Buffett's investing style, that makes a lot of sense. He relies on the simple and time-tested investing method of buying low and selling high. In a strong bull market when everyone else is buying, you're likely to see Buffett selling, and vice versa. One of his most famous quotes is that his goal is "to be fearful when others are greedy and to be greedy only when others are fearful."

That means over the past few weeks, as the market has dropped, there's a good chance that Berkshire has been buying. However, the major drop happened after the second quarter began, so you may not see robust buying activity until the second-quarter report. Investors won't get the full first-quarter trading report until the 13F is filed in the middle of May, although there will probably be some updates in the first-quarter report.

Buffett did give investors a clue as to what he might be thinking in this year's shareholder letter: "Often, nothing looks compelling; very infrequently, we find ourselves knee-deep in opportunities."

Although the market is focused on the fact that Buffett is selling more than buying, he is still buying. Investors already know about some of Berkshire Hathaway's recent trades, which are required to be reported by the Securities and Exchange Commission (SEC). The company bought more shares of Occidental Petroleum, VeriSign, and Sirius XM Holdings; it also bought more shares of five Japanese companies.

Buffett on tariffs

In an interview in March, Buffett called tariffs "an act of war, to some degree." He said he had plenty of experience with them and didn't seem to be worried, although he stated that they were a tax on goods when asked how they would impact inflation.

In other words, as wise as he is, he didn't make any fascinating observations about the tariff program, he simply accepted what tariffs are and how they function. His insight was to always consider what comes next: "And then what? You always have to ask that question in economics. You always say, 'And then what?'" He didn't say what he thinks is next, but he did reiterate that the majority of his funds will always be invested in American companies, because "It's the best place."

Investing like Buffett

In reality, any seasoned investor could and should have seen a drop coming, tariff-induced or otherwise. Buffett isn't a prophet, but if you've been in the market long enough, you know that a market that's valued too highly isn't sustainable, and some sort of correction will eventually land.

Today's tariff program is surely being considered in how Buffett and his team are investing today, but it's all part of a long-term economic cycle that plays out over and over again. If you're in it for the long term, expect economic downturns, and use them to your advantage to load up on great stocks.