Warrren Buffett cautions against prediction markets, calling them gambling

• Warren Buffett has shared his views on prediction markets with CNBC this past Saturday
• The famous Oracle of Omaha cautioned that day trading is akin to gambling, and so are prediction markets
• He also warned that Americans have never been in a more gambling mood than in the present day

Americans are in a gambling mood, argues the Oracle of Omaha, Warren Buffett, whose insight into the world of finance has become legendary, although the man himself ascribes it to reading hundreds of pages daily - and nothing else.

Warren Buffett remains skeptical on prediciton markets, cautions against cheaters

Speaking to CNBC on Saturday, Buffett didn’t so much blast the concept of prediction markets as such, but rather the idea of buying "one-day options," adding that this was not investing but speculating - "it’s gambling."

Buffett has become known for his focus on long-term investment strategies, arguing that you need to hold onto stocks and assets for an extended period of time to see if they really work out in the end.

Buffett is not the only high-profile executive who has solid investment credentials to weigh in on the prediction markets debate. Previously, Vanguard CEO Salim Ramji compared the sector to "a form of financial exploitation."

The Oracle of Omaha also pointed out that people were in a particular "gambling mood," arguing that there have never been more people willing to gamble in the United States before.

Buffett has not been ignorant of recent events, either, as he has been following the fallout of prediction market trades on events such as the capture of Venezuelan PresidentNicolas Maduro.

A church with a casino attached

The Berkshire Hathaway Chairman suggested that high-volatility events, such as real-world events that can be traded on, made them susceptible to cheaters.

The recent arrest of a US soldier who allegedly made more than $400,000 trading on Polymarket on the Maduro-related events was a case in point, Buffett himself recently recenrece.

Buffett went a step further to illustrate his concerns with the sector, calling it a "church with a casino attached," and doubling down on his own philosophy on investing: "Nobody can explain why they’re buying an option for one day," he argued."

Image credit: Unsplash.com