Warren Buffett warned Saturday that speculation in financial markets has reached an unprecedented intensity, likening one-day options to pure gambling and pointing to a US soldier's alleged use of classified intelligence to profit on a prediction market as evidence of a growing casino culture.
Buffett, speaking at Berkshire Hathaway's annual shareholder meeting in Omaha, said one-day options are best described as gambling, not investing, and that the casino has become very attractive to many participants.
New CEO Greg Abel used his first annual meeting to outline a disciplined approach to AI, saying the firm will not adopt the technology for its own sake. The company will deploy AI only where it delivers tangible value, such as in railway and insurance operations. Vice Chairman Ajit Jain added that AI remains years away from handling complex underwriting or investment decisions.
Abel also confirmed a concentrated equity strategy anchored by Apple, American Express, Coca-Cola, and Moody's, and ruled out any breakup of the conglomerate, though leaving a narrow exception for deteriorated labor or reputational issues.
Berkshire's cash mountain reached a record $397 billion in the first quarter of 2026, driven by $8.1 billion in net equity sales. The company reported GAAP net earnings of $10.1 billion, up from $4.6 billion a year earlier, though investment losses reduced earnings by $1.2 billion.
On the broader economy, Abel flagged pressure at Clayton Homes from persistently high mortgage rates, while NetJets CEO Adam Johnson noted high energy prices were weighing on demand. Abel sees a major growth opportunity in data center construction for Berkshire's utilities, but insisted large tech users must bear the full cost of power.