OMAHA, Nebraska — Warren Buffett warned that investors are in a heightened “gambling mood,” with many stocks trading at what he called “silly” prices, as U.S. equity valuations remain elevated.
The billionaire investor and former Berkshire Hathaway chief made the remarks in early May during the company’s annual shareholder meeting in an interview with CNBC.
Buffett, long known for his cautious approach to investing, highlighted the speculative atmosphere in financial markets. “We’ve never had people in a more gambling mood than now,” he said.
The comments come as the S&P 500 has recovered from a weak start to 2026 and posted gains of roughly 8% for the year so far, setting fresh record highs amid ongoing economic and geopolitical uncertainty. Valuations across the market have climbed, with the Shiller price-to-earnings ratio reaching levels last seen in the early 2000s before the dot-com bust.
Berkshire Hathaway has maintained a significant cash position in recent years as stock prices have risen. Buffett has repeatedly advised investors to “be fearful when others are greedy,” a principle that appears to guide the conglomerate’s restrained equity purchases.
The Buffett Indicator — which compares total U.S. stock market capitalization to gross domestic product — has also signaled elevated valuations in recent months, echoing concerns the investor raised in past periods of market exuberance.
Market participants have pointed to strong performance in technology and artificial intelligence-related stocks as a driver of recent gains, though broader participation has varied. Some analysts have noted high valuations on multiple metrics, while others maintain that corporate earnings growth could support current levels.
Berkshire Hathaway’s annual meeting, which draws thousands of shareholders to Omaha, serves as a regular platform for Buffett to share his views on investing and the economy. Details on any specific shifts in the company’s portfolio following the meeting were not immediately available.
As of June 11, 2026, U.S. stock indexes continue to trade near recent highs. Buffett did not predict a specific market outcome and has historically emphasized long-term investing over short-term timing.
