Legendary investor Warren Buffett tried to block the first derivative contract in the US back in 1982.
In a letter to US Congressman John Dingell 18 years ago, Buffett said more than 95% of the activity on the S&P 500 derivative would be "strictly gambling in nature", Forbes reports.
While Buffett has labelled derivatives "weapons of mass destruction" in the past, the billionaire has made substantial gains on the contracts through his Berkshire Hathaway vehicle.
At the time, Buffett was not the global phenomenon he is now, telling the Congressman he was responsible for an equity portfolio of over $600m. Berkshire now has assets of over $300bn and Buffett himself is worth over $47bn.
"In my judgment, a very high percentage, probably at least 95% and more likely much higher, of the activity generated by these contracts will be strictly gambling in nature," the letter reads.
"The propensity to gamble is always increased by a large prize versus a small entry fee, no matter how poor the true odds may be. That's why Las Vegas casinos advertise big jackpots and why state lotteries headline big prizes."
