Buffett Thinks The Market Is A 'Drunken Psycho'...Is It Now In Full Rage Hangover Mode?

Almost exactly one year to this day, mega-investor Warren Buffett called the stock market a "drunken psycho." With stocks having their worst start to a calendar year in history, traders have to be wondering if he was right all along.

In the first eight days of 2016, the S&P 500 fell 7.5 percent, the Dow fell 5.3 percent and the NASDAQ fell 7.4 percent. Psychological levels are also being tested; Apple Inc. AAPL is below $100 per share, Tesla Motors Inc TSLA has been below $200 and GoPro Inc GPRO is nearing single-digits a year after trading comfortably in the $50 range.

Buffett: Ignore The Stock Market, It's A 'Drunken Psycho'

To an audience in Detroit including Benzinga, Buffett said "you can ignore" the stock market.

"This imaginary person out there -- Mr. Market -- he's kind of a drunken psycho. Some days he gets very enthused, some days he gets very depressed. And when he get really enthused, you sell to him and if he gets depressed you buy from him," Buffett added. Emotions are contagious, and they have no place in investing, he reiterated.

The uber-successful investor said the easiest and most stress-free thing to do is to buy a basket of stocks and not pay attention to day-to-day gyrations. "“You've got your choice of thousands of business. Now, the best thing for most people is to buy a cross-section of them."

Ignore The Headlines

Buffett also harped on the media. “Pay no attention to headlines in the paper or people on television or anything, but put aside a little money each month. I'd put it in a very low-cost index fund."

He continued, "if you do that regularly throughout your working career, you're bound to have a substantial amount of capital.”