Warren Buffett has criticized the stock market for becoming increasingly driven by speculative trading rather than long-term investing.
“It’s hard to find value when everyone likes to gamble,” Buffett told CNBC’s Becky Quick.
The Berkshire Hathaway chairman made some sharp comments about the stock market earlier this year. In May, he likened the stock market to a “church with a casino” and called the surge in single-day options trading, in particular, “gambling.”
The stock market rose to an all-time high this year, overcoming concerns such as the energy shock caused by the continued war with Iran. Skeptics say there is too much speculation in stocks tied to artificial intelligence enhancements, with tools like options and leveraged exchange-traded funds adding fuel to the fire. Individual traders are increasingly interested in the stock market, buying shares in memory chip maker Micron and recent IPO SpaceX.
The 95-year-old billionaire investor, known for his commitment to value investing, expressed his belief that the most meaningful investment opportunities are rare and require a patient and disciplined approach.
“Sometimes you get an opportunity so quickly that you don’t get it. It’s unbelievable,” Berkshire’s chairman said. “You can also be very, very lucky if you find something within a few years. And the latter should always be the priority.”
“But humans love to gamble, so more money goes into actually training gamblers than training investors,” he says.
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