{"id":1459386,"date":"2022-05-01T08:00:11","date_gmt":"2022-05-01T12:00:11","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1459386"},"modified":"2022-05-01T08:00:13","modified_gmt":"2022-05-01T12:00:13","slug":"warren-buffet-says-stock-market-has-been-turned-into-a-gambling-parlor","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/warren-buffet-says-stock-market-has-been-turned-into-a-gambling-parlor\/","title":{"rendered":"Warren Buffet Says Stock Market Has Been Turned Into \u201ca Gambling Parlor\u201d"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwarren-buffet-says-stock-market-has-been-turned-into-a-gambling-parlor%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1459386&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"RenderKeyPoints-keyPoints\" id=\"RegularArticle-KeyPoints-4\" data-test=\"keyPoints-1\" data-analytics=\"RegularArticle-keyPoints-4-1\">\n<div class=\"RenderKeyPoints-wrapper\">\n<div class=\"RenderKeyPoints-list\">\n<div>\n<div class=\"group\">\n<ul>\n<li>Berkshire Hathaway CEO Warren Buffett lambasted Wall Street for encouraging speculative behavior in the stock market, effectively turning it into a &#8220;gambling parlor.&#8221;<\/li>\n<li>Buffett, 91, spoke at length during his annual shareholder meeting Saturday about one of his favorite targets for criticism: investment banks and brokerages.<\/li>\n<li>&#8220;Wall Street makes money, one way or another, catching the crumbs that fall off the table of capitalism,&#8221; Buffett said. &#8220;They don&#8217;t make money unless people do things, and they get a piece of them. They make a lot more money when people are gambling than when they are investing.&#8221;<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ArticleBody-articleBody\" id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<div class=\"group\">\n<p><a href=\"https:\/\/www.cnbc.com\/quotes\/BRK.A\" target=\"_blank\" rel=\"noopener\">Berkshire Hathaway<\/a> CEO <a href=\"https:\/\/www.cnbc.com\/warren-buffett\/\">Warren Buffett<\/a> lambasted Wall Street for encouraging speculative behavior in the stock market, effectively turning it into a &#8220;gambling parlor.&#8221;<\/p>\n<p>Buffett, 91, spoke at length during his annual shareholder meeting Saturday about one of his favorite targets for criticism: investment banks and brokerages.<\/p>\n<p>&#8220;Wall Street makes money, one way or another, catching the crumbs that fall off the table of capitalism,&#8221; Buffett said. &#8220;They don&#8217;t make money unless people do things, and they get a piece of them. They make a lot more money when people are gambling than when they are investing.&#8221;<\/p>\n<p>Buffett bemoaned that large American companies have &#8220;became poker chips&#8221; for market speculation. He cited soaring use of call options, saying that brokers make more money from these bets than simple investing.<\/p>\n<p>Still, the situation can result in market dislocations that give Berkshire Hathaway an opportunity, he said. Buffett said that Berkshire spent an incredible $41 billion on stocks in the first quarter, unleashing his company&#8217;s cash hoard after an extended lull. Some <a href=\"https:\/\/www.cnbc.com\/2022\/04\/23\/warren-buffett-is-on-a-roll-here-is-whats-behind-his-big-moves-and-what-could-come-next.html\">$7 billion of that went<\/a> to snap up shares of <a href=\"https:\/\/www.cnbc.com\/quotes\/OXY\" target=\"_blank\" rel=\"noopener\">Occidental<\/a>, bringing up his stake to more than 14% of the oil producer&#8217;s shares.<\/p>\n<p>&#8220;That&#8217;s why markets do crazy things, and occasionally Berkshire gets a chance to do something,&#8221; Buffett said.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">Stock picks and investing trends from CNBC Pro:<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>&#8220;It&#8217;s almost a mania of speculation,&#8221; <a href=\"https:\/\/www.cnbc.com\/charlie-munger\/\">Charlie Munger<\/a>, 98, Buffett&#8217;s long-time partner and Berkshire Hathaway vice chairman, chimed in.<\/p>\n<p>&#8220;We have people who know nothing about stocks being advised by stock brokers who know even less,&#8221; Munger said. &#8220;It&#8217;s an incredible, crazy situation. I don&#8217;t think any wise country would want this outcome. Why would you want your country&#8217;s stock to trade on a casino?&#8221;<\/p>\n<p>Retail traders flooded into the stock market during the pandemic, boosting share prices to records. Last year, the frenzy was fueled further by meme-inspired trading from Reddit message boards. But the stock market has turned this year, putting many of those new at-home traders in the red. The Nasdaq Composite, which holds many of the favorite names of small traders, is in a bear market, down more than 23% from its high after an April crush.<\/p>\n<p>Warren Buffett has a long history of deriding investment bankers and their institutions \u2013saying that they encourage mergers and spinoffs to reap fees, rather than improve companies.<\/p>\n<p>He typically shuns investment bankers for his acquisitions, calling them pricey &#8220;money shufflers.&#8221; Buffett&#8217;s $848.02 per share offer for insurer Alleghany reportedly <a href=\"https:\/\/www.bloombergquint.com\/business\/buffett-thumbs-nose-at-goldman-bankers-with-quirky-deal-price\" target=\"_blank\" rel=\"noopener\">excludes<\/a> Goldman&#8217;s advisory fee.<\/p>\n<p>Earlier in the session, he noted that Berkshire would always be cash-rich, and in times of need, would be &#8220;better than the banks&#8221; at extending credit lines to companies. An audience member made an inaudible comment while he was talking.<\/p>\n<p>&#8220;Was that a banker screaming?&#8221; Buffett joked.<\/p>\n<p><em>(Follow along to live updates and a live feed of the annual meeting<\/em> <a href=\"https:\/\/www.cnbc.com\/2022\/04\/30\/berkshire-hathaway-annual-meeting-live-updates.html\"><em>here<\/em><\/a><em>.)<\/em><\/p>\n<\/div>\n<\/div>\n<div class=\"WatchLiveRightRail-inline WatchLiveRightRail-container\" id=\"RegularArticle-WatchLiveRightRail-7\" data-test=\"watchLiveRightRail-4\" data-analytics=\"RegularArticle-watchLiveRightRail-7-4\">\n<div class=\"WatchLiveRightRail-contents\"><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButton\">WATCH LIVE<img decoding=\"async\" src=\"denied:data:image\/svg+xml;base64,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\" class=\"WatchLiveRightRail-logo\" alt=\"logo\" \/><\/a><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButtonMobile\">WATCH IN THE APP<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-12 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Berkshire Hathaway CEO Warren Buffett lambasted Wall Street for encouraging speculative behavior in the stock market, effectively turning it into a &#8220;gambling<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1459386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1459386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1459386"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1459386\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1459386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1459386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1459386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}