On Saturday, Warren Buffett warned that financial markets are increasingly being driven by speculation rather than long-term investing, saying he has “never had people in a more gambling mood than now.”
Buffett Warns Of Surge In Market Speculation
Speaking in a CNBC interview during Berkshire Hathaway Inc.’s (NYSE:BRK) (NYSE:BRK) annual shareholders meeting, the longtime investor criticized the surge in short-term trading behavior, particularly the rise of options trading and prediction-style bets.
He described modern markets as resembling “a church with a casino attached,” adding that the casino side has become far more prominent.
Buffett said, “That’s not investing. It’s not speculating. It’s gambling, just totally,” referring to one-day options trading and other high-frequency strategies gaining popularity among retail investors.
He also noted that over six decades in markets, only a small number of years offered meaningful investment opportunities.
As a result, Berkshire Hathaway has accumulated nearly $400 billion in cash, as Buffett continues to find assets …
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