Buffett: I've never seen people with such a strong gambling mentality as now

BlockBeats News, May 3rd. During an interview with CNBC, Buffett referred to the market as a "church with a gambling aspect" to distinguish traditional value investing from the current enthusiasm for short-term options trading and the increasing interest in market speculation.

He said, "People can switch back and forth between the church and the casino. I would say that more people are in the church than in the casino, but the casino has become very attractive."

He added, "If you're buying one-day options or selling them, that's not investing, nor is it speculation, it's gambling." Buffett stated that the current "gambling-like" market sentiment has reached a peak. He said, "We have never seen people with such a strong gambling mentality as we see now."

He also mentioned a recent case of a U.S. soldier who allegedly used confidential information related to a military operation in Venezuela to profit around $400,000 in the options market. The U.S. Department of Justice is currently prosecuting this case. Buffett said, "Without insider information, no one can explain why someone would buy one-day options, just because they know when we're going into Venezuela, and make over $400,000... The amount of these trades is simply incredible."

Berkshire Hathaway held its annual shareholders meeting on May 2nd - the first meeting since Warren Buffett handed over the CEO position to Greg Abel earlier this year. Prior to the meeting, Berkshire's latest financial report showed that its cash reserves had reached a record-high, nearing $400 billion.