Warren Buffett flags three dangerous trends for investors in 2026: ‘That’s not investing’
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- Warren Buffett told CNBC at Berkshire’s annual shareholder meeting that investors are in a “gambling mood” more than ever, warning that turning investing into gambling is dangerous.
- Warren Buffett singled out the rapid growth of one‑day options, which expire within the same trading session and enable highly leveraged short‑term bets, calling them “not investing.”
- Warren Buffett warned about prediction markets, referencing a U.S. soldier who allegedly earned $400,000 on Polymarket using classified information and was later charged with insider trading and fraud.
- S&P 500 has risen for six straight weeks and is hovering near an all‑time high, creating “very silly” asset prices, according to Buffett’s observations.
- Greg Abel presided over the meeting, receiving praise for his operational knowledge, while Reuters noted empty seats and a quieter crowd compared with past Berkshire gatherings.
Why it matters: Retail investors who avoid speculative one‑day options and prediction markets will benefit; speculative traders risk big losses as asset prices become "silly" amid record‑high S&P 500 valuations.
