Bill Gates told CNBC the Reddit-fueled trading mania in GameStop and other stocks was reminiscent of betting at a casino and not investing.
The billionaire philanthropist and tech entrepreneur’s comments ran Thursday on “Squawk Box,” hours before the House Financial Services Committee holds a hearing on the GameStop short squeeze that was sparked last month. The video-game retailer’s shares rocketed higher as retail traders piled into the stock, which was heavily bet-against by hedge funds.
“People enjoy gambling. Sadly, it’s a zero sum game,” Gates told CNBC’s Andrew Ross Sorkin in a recorded interview. “The idea that you drive a valuation way, way beyond what is rational, it’s hard to…