Warren Buffett warns investors about excessive risk-taking in stock market

Warren Buffett has warned that investors are taking too many risks with their money. He spoke at Berkshire Hathaway's annual meeting and in a CNBC interview. Buffett said people are in a "gambling mood" that he has never seen before. He compared the stock market to a church with a casino attached. The church represents long-term investing, and the casino represents short-term gambling. He predicted that prices for many stocks will "look very silly" in the future. Right now, many stocks are trading at record-high prices. A key measure called the S&P 500 Shiller CAPE Ratio is close to historic highs, which suggests stocks may be overvalued. Overvalued stocks usually perform poorly over time and fall hardest when markets turn bad.