Warren Buffett has warned that financial markets are being pulled deeper into speculation, saying many asset prices will eventually look absurd after a run to record highs in major US indexes. Speaking at Berkshire Hathaway’s annual meeting in Omaha, the 95-year-old investor argued that enthusiasm is increasingly being driven by trading habits rather than careful appraisal of value.

According to remarks reported by Bloomberg, market exuberance has also been showing up in the sheer pace of the rally, with US equities climbing sharply from their spring lows and pushing past familiar valuation warnings. Buffett’s critique, echoed by Moneycontrol, focused on ultra-short-term trading, especially one-day options, which he likened to gambling rather than ownership of businesses.

The Berkshire chairman also pointed to prediction markets and betting platforms as signs of a broader cultural shift on Wall Street. Fortune reported that he used unusually blunt language to describe the atmosphere, suggesting that investors are far more comfortable with fast wagers and political bets than in the past. He said the trend does not necessarily mean an immediate crash, but it does imply that many prices may look excessive in retrospect.

Buffett’s remarks came against the backdrop of Berkshire’s enormous cash pile, which has reached about $380 billion, underlining the company’s caution as it waits for more attractive opportunities. The meeting also highlighted the group’s leadership transition, with Greg Abel now chief executive while Buffett remains executive chairman. Berkshire has continued to report strong profits, even as its shares have lagged the wider market, reinforcing the contrast between Buffett’s disciplined approach and the speculation he says now dominates parts of Wall Street.

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Source: Noah Wire Services