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According to Warren Buffett, a business magnate, philanthropist, and investor from America who is the current Chief Executive Officer and Chairman of Berkshire Hathaway, the current market is almost totally a casino.
Warren Buffett recently made these remarks as he pointed out that monetary markets in the US had metamorphosed into almost an online casino, such as the best online casinos for US players at roulettesites.org. This remark by Buffett is evident from how thousands of merchants have recently flooded the monetary system in the US, especially throughout the lockdown.
Buffett said that currently, the market is acting like a casino where people are gambling on stocks rather than investing in companies. He also said that there are very few investors in the market right now, and most people are just speculators.
He warned that the current market conditions are not sustainable in the long run and that a market crash is inevitable. He advised people to be very careful with their investments and not to put all their eggs in one basket.
While talking to thousands of shareholders who gathered for the corporate’s annual assembly in Omaha, Buffett added that Wall Avenue inspired this new feat in the market (which he tagged “extraordinary”).
The billionaire’s comments follow a shift in the way people across the world interact with their finances. Since the beginning of the LOCKDOWN, many Americans have opened several brokerage accounts even as many of them are now turning to the options market where they can bet on the quick fall or rise in firms like Tesla and Apple.
Buffett’s Assertion Is Backed By Evidence
According to Buffett and Charlie Munger (Vice-chair of Berkshire and Buffett’s consigliere), the rapid pace of trading is credited to the fact that many shareholders were short-term investors; so, the firm was able to make its own large bets.
The firm spent a whooping sum of 51.1 billion dollars to shop for corporation shares within the first quarter alone. This sum was also spent on huge bets on oil majors Occidental Petroleum and Chevron. Buffett was astonished about Berkshire’s ability to buy more than 14% of Occidental in just a few weeks.
Buffett said that big firms in America became poker chips where people were selling and buying like 2-day calls, and 3-day calls (these are derivatives). For many new traders in the market, derivatives became the most preferred instrument. In the long run, Wall Street cashes out one way or the other as it catches crumbs that fall from the capitalism table.
According to Buffett, big commissions and short-term gambling which were hitherto considered disgusting are now unraveling.
Buffett Addresses Berkshire Shareholders
Since 2019, this recent statement from Buffett is the first of its kind to Berkshire investors who were equally glad to hear from the top management of the company and especially the billionaire investor.
Before the annual meeting, there were questions about the effect the lockdown will have on attendance at the meeting. Several managers at Berkshire subsidiaries stated that the turnout in Omaha had been lower than in recent times. The lockdown has surely played its part because many shareholders often look forward to the meeting at the convention center where they can enjoy home goods at The Pampered Chef or purchase Fruit of the Loom underwear.
At the start of the meeting, Buffett opened the floor with “OK” (his usual one-word line and the audience took to their feet at the CHI Health Center.
Investors waited long hours before they could hear the outcome of the actual business of the day even as they speculated whether shareholders have been able to successfully advance proposals that will require Berkshire to make public the environmental impact of its subsidiaries or if the title of Chief Executive and Chairman will be split. Many analysts expected the proposal to fail because Buffett owns high-class voting stock.
Earlier on, Berkshire reported that its operating revenue did not record much change from last year while overall net earnings reduced to 5.5 billion dollars.
Should Investors Consider US Online Casinos as A Viable Alternative?
The online casino business continues to remain viable as passionate gamblers keep longing for it because of the excitement they get. This is why online casinos are a great investment opportunity. The online casino industry has grown tremendously in recent years even as several investors have enlarged their capital via investment in good casinos.
It is possible to invest money in online casinos and increase your money sustainably, so investors should consider investing in US online casinos as a viable alternative to the current market.
Even as the current market is almost totally a casino, it is not entirely the same as an online casino; thus, investors must pay attention to some points and not blindly invest their money in online casinos.
Some of the points to consider include where to invest, the respectability and security of the casino, the encryption, and software technology in use, the payment options such as fiat currencies or Bitcoin (BTC), and the type of games the casino offers among other things.
It is also highly recommended that investors invest money in already-existing casinos because it is very seamless. Investors can even make good gains from a struggling casino because the stock price will be lower by then while they can then control a large stake in the casino when the casino is profitable. The casino market will continue to grow in the future as a result of several digital trends. An intending investor should do adequate research and they will discover that a casino is worth investing in such that they can grow their investment in a few years.
In conclusion, the online casino industry is still viable, and investors should consider investing in US online casinos as a viable alternative to the current market. There are already many casinos that are operational, and an investor can make good gains from a struggling casino by controlling a large stake in the casino when it becomes profitable. With the right research, an investor will find that a casino is worth investing in the long term.
