‘Stock markets are like a church with casino attached’: Why Warren Buffett's warning against ‘gambling’ still rings true

Turbulence in the stock markets is par for the course, feels Berkshire Hathaway Chairman Warren Buffett. Speaking to CNBC after the company's first annual general meeting (AGM) with successor Greg Abel at the helm as CEO, the billionaire told the channel that good years are few and far between.

Buffett shared that in the 60 years he has been working the markers, only five were “really juicy” and the philosophy of doing nothing and waiting for good opportunities has been what has paid off for the Oracle of Omaha.

Discouraging investors from blindly chasing returns, Buffett reiterated his view that the stock markets are like a church (long term investments) with a casino (quick, short-term bets) attached and many investors are taking too much risk. Likening one-day options trading to playing card games, the ace investor cautioned: "That’s not investing. It’s not speculating. It’s gambling, just totally.”

Speaking at the sidelines of the Berkshire AGM, Buffett said excessive greed and risk-taking are pushing asset prices into “very silly” territory adding, “We’ve never had people in a more gambling mood than now.”

He also addressed the rise of prediction markets — giving the example of US Army soldier Gannon Ken Van Dyke, who allegedly made over $4,00,000 on Polymarket using classified information tied to the capture of Venezuelan leader Nicolás Maduro. The Justice Department later charged him with insider trading and fraud.

“And the quantity of those things is just incredible. So, we’ve never had people in a more gambling mood than now. But that doesn’t mean that investing is terrible. It does mean that prices for an awful lot of things will look very silly.” he stated.

According to an analysis by the Motley Fool, anxiety over the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite performance over the past few weeks has raised alarm among investors. There is uncertainty among experts, who cannot agree if artificial intelligence is a bubble, or still has room to grow.

It cited a June 2026 survey by the American Association of Individual Investors, which found that about 45% of US investors are optimistic about the market over the next six months, while 36% are pessimistic and 19% are neutral. But added that CNN's Fear and Greed Index, an indicator of investor sentiment, stayed in the "fear" category throughout June.

Tracking part performances, it noted that historically, overhyped stocks eventually slip, and buying these at record-high prices is extremely risky. For this too, Buffett has some advice: “Only buy something that you’d be perfectly happy to hold if the market shuts down for ten years.”

Through the years, Buffett's investing philosophy has focused on companies with an “economic moat” around them, and those with a strong competitive advantage and growth prospects in the long run. He often advices investors to make considered choices rather than trying to time or predict the markets, believing that investing in a company with good fundamentals will inevitably pay off in the long run.

Ultimately, he believes that the longer you hold stocks the less risky they become and investment takes more than smarts, it takes the patience.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br> As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international deve...