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Warren Buffet calls Wall Street a ‘gaming parlor’ — RT Business News

A billionaire investor claimed that speculative behavior in the stock market was encouraged

Billionaire investor and philanthropist Warren Buffett has blasted Wall Street, saying speculative behavior is widely encouraged and is turning the stock market into a “game room”.

“Wall Street makes money, one way or another, by collecting the crumbs that fall from the table of capitalism”, Buffett at his annual shareholder meeting on Saturday.

“They don’t make money unless people do things, and they get a piece of it. They make a lot more money when people play than when they invest.

The Berkshire Hathaway CEO pointed to the short-term uncertainty of an increasingly volatile market.

“The interesting thing is, obviously, we don’t have a clue what the stock market is going to do when it opens on Monday,” Buffett said.

According to Buffett, large American companies have “became poker chips” for stock market speculation. He cited the growing use of call options, saying brokers are making more money from these bets than from just investing.

The billionaire admitted that such a situation can lead to market disruptions that give Berkshire Hathaway an opportunity.

He said the conglomerate spent a staggering $41 billion on stocks in the first quarter of this year, freeing up a pile of cash accumulated after a prolonged lull.

“That’s why markets do crazy things, and sometimes Berkshire is lucky enough to do something,” Buffett said.

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