Warren Buffett Warns That Prediction Markets Are ‘Gambling,’ Not Investing
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Warren Buffett Warns That Prediction Markets Are 'Gambling,' Not Investing By: Martha C. White Martha C. White Writer | Joined May 2026 Has also written: Starting to Invest in Your 40s? Here’s What It Could Take to Catch Up 8 of the Smartest Warren Buffett Quotes You Don't Already Know 7 Investing Myths That Are Quietly Costing You Money Warren Buffett's Smart Money Tips Anyone Can Use How to Invest in Silver See full bio Editor: Julia Glum Julia Glum Managing Editor | Joined February 2018 Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. Has also written: The Everyperson's Guide to Making Money in Trump's America Should the New York Stock Exchange Be Open 24 Hours a Day?
The Dow Just Crossed 40,000 for the First Time Ever Americans' 6 Favorite Long-Term Investments, Ranked Dollar Scholar Asks: Should I Buy Gold? See full bio Published: May 4, 2026 3 min read Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services. In a surprise interview during Berkshire Hathaway's annual shareholder meeting over the weekend, billionaire investor Warren Buffett expressed a dim view of prediction markets, comparing them to a casino. "If you're buying one-day options or selling them, I mean, that's not investing, it's not speculating — it's gambling," Buffett told CNBC on Saturday. Must Read10 Smart Ways Seniors Are Earning Extra MoneyExperts are Bullish on Gold — Here's How to Get InWarren Buffett on Market Volatility — and 3 Ways You Can Take Advantage Prediction markets are platforms where traders can bet on real-life events. Companies like Polymarket (which reportedly has over 2.3 million accounts) and Kalshi (5 million) have exploded in popularity in recent months despite warnings from experts about their many risks. Now, the Oracle of Omaha is joining the chorus. "We've never had people in a more gambling mood than now," he added. "The casino has gotten very attractive." Buffett also noted that the short-term nature and high volatility of prediction markets makes them attractive for cheaters, referencing the recent news that a special-forces soldier was charged with insider trading for using secret military information about the Trump administration's clandestine ouster of Venezuelan President Nicolás Maduro to place bets on prediction markets. Comparing them to a "a church with a casino attached," Buffett expressed disdain for short-term options trading and prediction markets: a position that likely stems from his long-held and oft-quoted advice to only invest in what you understand. "Nobody can explain why they're buying an option for one day," he said.
Where People Are Investing Right NowRobinhood lets you trade stocks and ETFs 24 hours a day, 7 days a weekCIT Bank: Earn up to 4.10% with a high-yield savings accountAmerican Hartford Gold: Explore different gold IRA options and protect your wealth Buffett, who stepped down as CEO of Berkshire Hathaway last year, grew the conglomerate into a $1 trillion business during his 60 years at the helm by embracing a long-term, buy-and-hold investment strategy. Buffett's successor, Greg Abel, echoed this sentiment at Saturday's meeting when he answered a shareholder question about how young investors should balance patience with action. "We very much have to understand what we're investing in," he said. "Do we understand this business? Do we understand the opportunity and, more importantly, do we understand the risk?" Must Read10 Smart Ways Seniors Are Earning Extra MoneyExperts are Bullish on Gold — Here's How to Get InWarren Buffett on Market Volatility — and 3 Ways You Can Take Advantage