Buffett Warns Markets 'Casino' in Peak Gambling Mood, Holds $400B Cash

Warren Buffett intensified caution on May 5, labeling markets a 'casino' driven by one-day options and an unprecedented 'gambling mood,' while Berkshire holds nearly $400 billion in cash amid overvalued conditions. This builds on his April 30 CNBC view dismissing the 2026 S&P 500 dip as 'nothing' too small to deploy $373 billion cash, unlike past 50% crashes. May 2 annual meeting remarks called the investing environment 'not ideal,' criticized options gambling, and welcomed Jerome Powell staying as Fed governor; May 3 reiterated high valuations with Buffett Indicator at 227% (over 200% threshold) and S&P forward P/E at 21x versus 16x average.