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At the age of 91, the world's looking bleak to Warren Buffett

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At the age of 91, the world's looking bleak to Warren Buffett

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The 91-year-old CEO of Berkshire Hathaway believes the stock market has become highly speculative and turned into a “gambling parlour”, owing to the influence of investment banks and brokerages

Veteran investor Warren Buffett does not like the way large companies have become “poker chips” to market speculation in the United States. The 91-year-old CEO of Berkshire Hathaway believes the stock market has become highly speculative and turned into a “gambling parlour”, owing to the influence of investment banks and brokerages.
There has been a rise in the use of call options as brokers earn more from these bets than simple investing, Buffett said at the annual meeting of Berkshire Hathaway on April 29.
According to Buffett, Wall Street makes more money “when people are gambling than when they are investing”.
Buffett’s long-time partner and Berkshire Hathaway vice-chairman Charlie Munger, 98, echoed the same sentiment, saying the market mania is sparked by “people who know nothing about stocks being advised by stock brokers who know even less”.
“It’s an incredible, crazy situation,” CNBC quoted Munger as saying.
Another worry for investors around the world is soaring inflation as the damage caused by rising prices is broader, Buffett said on Saturday. “Inflation swindles almost everybody, including companies, bond and equity investors as well as even those who shy away from investing,” according to Buffett.
In the US, inflation hit a new 40-year annualised high of 6.6 percent in March. Buffett said he did not know where the rates were heading, but rising prices were having an impact.
"Inflation swindles the bond investor ... it swindles the person who keeps their cash under their mattress, it swindles almost everybody," Reuters quoted Buffett as saying.
The billionaire investor reiterated his stance on cryptocurrencies, saying they were not a productive asset as they did not produce anything tangible. In the past, Buffett had described cryptocurrency as rat poison.
At the annual shareholder meeting on Saturday, Buffett said he wouldn't buy the whole of Bitcoin even for $25.
"If you told me you owned all the Bitcoin in the world and you offered it to me for $25, I wouldn't take it," the Insider quoted Buffett as saying.
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