Berkshire HathawayThe CEO Warren BuffettWall Street was criticized for its support of speculative behaviour in the stock markets, effectively making it a “gambling hall”.

Buffett (91) spoke long during the annual shareholder meeting on Saturday, about one his most favorite target for criticism: brokerages and investment banks.

Buffett stated that Wall Street “makes money in one way or the other, by grabbing the breadcrumbs from capitalism.” They don’t make any money until people do something, and then they get a share of it. People make more money playing gambling than they do investing.

Buffett lamented that American corporations have become “poker chips” to market speculation. His soaring usage of call options was cited by Buffett, who stated that brokers earn more from these bets then simple investing.

Berkshire Hathaway may still be able to profit from the market turmoil, however, he stated. Buffett claimed that Berkshire spent $41 Billion on stock purchases in its first quarter. It was a staggering figure, which he said unleashed his cash stash after a long lull. Some $7 billion of that wentBuy shares OccidentalHis stake grew to over 14%, making him the largest shareholder of the oil producer.

Buffett stated, “That’s why markets do crazy stuff and sometimes Berkshire gets the chance to do something.”

It’s “almost a mania for speculation.” Charlie MungerBuffett’s partner for many years and Berkshire Hathaway vice-chairman, 98, called in.

Munger stated that stock brokers are advising people with little knowledge about stocks. This is an unbelievable, insane situation. This is something that no wise nation would wish for. What would make you think your stock could trade in a casino?

Stock market prices rose to new heights after the pandemic. Retail traders surged into the stock exchange, pushing share prices past all records. Reddit’s message boards fueled the meme-inspiring trading that accelerated this year’s frenzy. The stock market turned this year and many new traders at home are now in trouble. Nasdaq Composite holds many small-traders’ favorite names and is currently in a bearish market.

Warren Buffett has a long history of deriding investment bankers and their institutions –saying that they encourage mergers and spinoffs to reap fees, rather than improve companies.

For his acquisitions, he often avoids the services of investment banksers and calls them expensive “money shufflers”. Buffett offered $848.02 per Share to Alleghany, an insurer. excludesConsultancy fee for Goldman Sachs

He noted earlier in the session that Berkshire was always cash rich and would, in times of crisis, be better than banks at providing credit lines to businesses. One audience member said something that was not audible while he spoke.

“Was that the banker shouting?” Buffett joked.