Warren Buffett issues new warning, says tough to find value in market when everybody prefers gambling

Market veteran Warren Buffett criticised the current stock market environment, highlighting that value investing is fizzling out as people prefer gambling instead.

"It is tough to find values when everybody is preferring gambling," the legendary investor said in his latest interview to CNBC. He added that there are times when opportunities are just thrown at an investor so fast, and then there are other times when the investor is lucky to find one thing in a couple of years. "And it should always be that the latter is what prevails," the 'Oracle of Omaha' said.

"But since humans love to gamble so much, there is more money in actually cultivating gamblers than there are cultivating investors," the 95-year-old Berkshire Hathaway Chairman said.


Why Buffett says value is getting harder to find

Earlier in May too, Warren Buffett had warned against the growing "gambling" culture in financial markets, cautioning that speculative behavior is distorting asset prices and increasing risks for investors. He said that markets are resembling "a church with a casino attached", highlighting a widening divide between long-term investing and short-term speculation.

"If you are buying one-day options or selling them, that is not investing, it is not speculating, it is gambling. We have never had people in a more gambling mood than now. It doesn't mean investing is terrible. It does mean prices for an awful lot of things look very silly," he said in earlier interview with CNBC.

What it means for investors

Buffett's comments come as global stock markets have witnessed sharp swings this year amid multiple headwinds. Excessive optimism around artificial intelligence initially fuelled a massive rally in technology stocks, followed by an equally sharp correction as investors began questioning the scale of spending by hyperscalers.

To top it off, the seesaw political game and skyrocketing oil prices amid the raging conflict between US and Iran further spiked volatility in global markets.

Despite these swings, Buffett has consistently championed value investing and long-term patience over chasing short-term market excitement. In his 1989 letter to Berkshire Hathaway shareholders, he famously wrote: "It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

The message remains relevant today. In volatile markets, investors are often tempted to trade more frequently in search of quick gains, but Buffett's philosophy argues for focusing on business quality, valuation and long-term compounding instead of speculative bets.

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