Warren Buffett warns of market speculation and reiterates S&P 500 index fund recommendation

Berkshire Hathaway CEO Warren Buffett said the U.S. equity market is drifting toward speculation, describing it as a “casino” where short‑term gambling is overtaking genuine value investing. He noted that daily options activity and leveraged ETFs have accelerated this trend, especially in AI‑related stocks, and warned that few worthwhile value opportunities remain.

Buffett also restated his long‑standing advice for individual investors to place their money in low‑cost S&P 500 index funds, citing the Vanguard S&P 500 ETF as his preferred vehicle. He pointed to the index’s historical average annual return of about 10 % since the 1950s and its resilience after market downturns, arguing that broad‑based exposure reduces risk and captures long‑term growth of American companies.