Trading in the stock market nowadays — ruled by exchange-traded funds, index funds, computer trading and information overload — is like gambling, billionaire businessman and philanthropist Ken Langone told CNBC on Wednesday.
"There's a disconnect between what used to be the yardstick by which you measure stocks: earnings, dividends and so forth. It's a casino out there. The only hope you have is to own great companies, put them away and don't look at the market," the 83-year-old Langone said in a "Squawk Box" interview.
The recent volatility in the market has certainly not been for the faint of heart. On Tuesday, the S&P 500 closed just above its 2018 low as stocks struggled to keep a rebound alive throughout the session. The index remained firmly in a correction, defined as a decline of 10 percent or more from the most recent high, even as it moved higher in early Wednesday trading.