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Buffett Warns Investors Are in a 'Gambling Mood' as Stock Prices Look 'Silly'

He urges diversification to cut risk given valuations that leave investors exposed.

Overview

  • At Berkshire Hathaway's annual meeting, Buffett told CNBC that investors are in a gambling mood and that many stocks now trade at what he called silly prices.
  • The S&P 500 has bounced back from a weak start to 2026, reached new record highs, and is up about 8% for the year.
  • Yahoo Finance reports that the Shiller CAPE, which averages inflation-adjusted earnings over 10 years, is near levels last seen before the early‑2000s tech bust.
  • Berkshire and Buffett have kept a cautious stance toward stocks in recent years as valuations climbed across the market.
  • He still backs long-term investing but urges people to trim risk by diversifying into value or income‑generating holdings.