Warren Buffett makes investment decisions based on business fundamentals rather than the broader market environment.

The S&P 500 ( ^GSPC 0.49% ) has advanced 12% year to date, notching 25 record highs in the process. What makes that number particularly extraordinary is the index was actually down 19% from its high in April when President Trump announced tariffs. But it quickly rebounded and has since rocketed 32% from its April low.

That upward momentum begs the question: Should you really buy stocks with the S&P 500 racing through record highs? Warren Buffett has pertinent advice, and historical data provides a clear answer to that question.

Warren Buffett's sensible advice on picking stocks

Warren Buffett owns about 198,000 shares of Berkshire Hathaway Class A stock, which

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