Warren Buffett Called Today's Stock Market 'a Church with a Casino Attached,' Warning That 'We've Never Had People in a More Gambling Mood Than Now.' Does History Say Investors Should Pull Back?
Buffett's warning is worth heeding, but it doesn't mean you should try to time the market.
Overview
Warren Buffett, the former CEO of Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB), is one of the world's most famous investors. In fact, his long-term success as an investor earned him the nickname the Oracle of Omaha. So investors should pay attention when he issues a warning about elevated risk, as he recently did by suggesting there's a gambling mentality on Wall Street today. However, Wall Street's long-term history still has an important story to tell, too.
Buffett lamented that "we've never had people in a more gambling mood than now," in an interview with Fortune. He even invoked the notion of religious fervor, opining that Wall Street is like a church with a casino attached. That is a very negative view of the market environment, but it isn't unrealistic.
Image source: The Motley Fool.
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Originally published at www.fool.com.