Warren Buffett says ‘humans love to gamble’ as he takes digs at a speculative stock market — can value still be found on Wall Street?

“There are times when opportunities are just thrown at you so fast you can’t, you know, it’s unbelievable,” Buffett said. “And then there’s other times when you’re very, very lucky if you find one thing in a couple of years. And it should always be that the, the latter is what prevails. But since humans love to gamble so much, there’s more money in, in actually cultivating gamblers than there are cultivating investors.”

Quick turns versus long looks

Buffett has long been an advocate of the buy and hold philosophy when it comes to stocks. Find a company with good fundamentals that are undervalued and buy into it, he has advocated, then wait for it (and, when applicable, help it) grow into the powerhouse you believe it can be.

Another cardinal rule: Don’t invest in an industry or business you don’t thoroughly understand.

He and his longtime partner Charlie Munger preferred to buy “wonderful” companies for a fair price rather than mediocre ones at a bargain price. That approach led Berkshire Hathaway to grow to a $1 trillion business.

That’s a different approach than many investors today, particularly individuals who tend to follow the herd, buying shares of the hot stock of the moment (i.e. SpaceX, Micron or GameStop). Many of those investors lose money.

Buffett, in the past, has called the stock market “a church with a casino attached.”

Against the tide

While some investors might shrug off Buffett’s warning, it won’t be the first time his warning has gone unheeded.