Buffett said markets are increasingly tilted toward gambling, making worthwhile opportunities rarer even as U.S. stocks hit record highs and speculative activity around AI shares, options and leveraged ETFs intensifies.
Warren Buffett said the stock market has become increasingly tilted toward short-term gambling rather than long-term investing, making it harder to find worthwhile opportunities. In a July 15 interview with CNBC's Becky Quick, Buffett said meaningful investments are rare and require patience and discipline, adding that long stretches without attractive ideas should be considered normal. Buffett echoed a warning he made in May, when he described the market as “a church with a casino attached” and said same-day options trading amounted to gambling. He also said the system has evolved to make more money from producing gamblers than from cultivating investors, reflecting his long-running preference for value investing over speculative trading. His remarks come as U.S. stocks continue to set record highs despite risks including the potential for an energy shock tied to a war with Iran. Skeptics say speculation in artificial intelligence-related shares, along with options and leveraged exchange-traded funds, has added to market froth, while retail investors have piled into names including Micron, Sandisk and SpaceX.