Key highlights:
- Warren Buffett says gambling in the stock markets makes it difficult to spot value trades
- The US stock markets have recorded major gains despite Buffett’s criticisms
- While stock markets are rallying in 2026, crypto prices have tumbled to new multi-year lows
Legendary American investor Warren Buffett has fired shots at speculative trading in the stock market while expressing his preference for long-term investing. While Buffet noted that it is “tough” to find value in today’s market, the US stock market is rallying in 2026, despite a raft of macroeconomic shocks.
“Tough to find value when everybody is gambling,” says Buffett
In an interview with CNBC, Buffet criticized the US stock market for being driven by speculative trading rather than long-term investing. The 95-year-old investor revealed that heavy speculative trading makes it difficult to find value in today’s stock market, a far cry from previous eras.
“It’s tough to find values when everybody is preferring gambling,” said Buffett.
Buffett made his fortune in the stock market through six decades of disciplined investing and “leaning on the power of compounding.” Worth $147 billion, Buffett’s fortune is primarily tied to his ownership of Berkshire Hathaway stock, opting to reinvest profits year after year.
“Since humans love to gamble so much, there’s more money in cultivating gamblers than there is in cultivating investors,” added Buffet.
This is not the first time Buffett has fired salvos at the stock market. Back in May, Buffett described the stock market as a church with a casino attached, pointing accusing fingers at day traders for fueling speculation.
A recent MarketWatch report revealed that only 5% of day traders make a profit, with a staggering 95% recording steep losses. The report also disclosed that active day traders make up under 10% of all stock market participants, accounting for a disproportionate share of daily trading volumes.
Stock market surges in 2026 despite Buffett’s criticism
While Warren Buffett has highlighted the difficulty in spotting value in the markets, the US stocks have had a strong year in 2026. The S&P 500 is up over 10% year to date, while the Nasdaq Composite has risen in the double digits since the start of the year.
Furthermore, both the Dow Jones Industrial Average and Russell 2000 have raked in impressive returns for investors in 2026. The US stock market is riding the tailwind of cooling inflation and better-than-expected corporate earnings by financial and technology stocks.
Source: Chase Bank
Meanwhile, rising enthusiasm for AI has powered technology stocks to a strong showing in 2026. A string of high-profile IPOs, including SpaceX, has contributed to a rally in major US indexes.
However, US stocks have had to navigate setbacks in 2026, including multiple macroeconomic concerns that sent semiconductor stocks into a decline.
On the other hand, cryptocurrency prices have had a torrid year with all large-cap tokens nursing major declines. Bitcoin (BTC) slipped below $60K for the first time since 2025, while Ethereum (ETH) continues to trade below the $2,000 mark.
