“We don’t want to make our money selling things that are bad for individuals” – Billionaire investor Charlie Munger tears into Robinhood

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Billionaire investor Charlie Munger is clearly not a fan of Robinhood. Munger, Warren Buffett’s lengthy-time enterprise accomplice and the vice chairman of Berkshire Hathaway has lambasted Robinhood at completely different occasions, accusing the buying and selling app and related apps, of encouraging newbie traders to gamble on shares and dabble with dangerous choices buying and selling.

“It’s just god-awful that something like that would draw investment from civilized men and decent citizens. It’s deeply wrong. We don’t want to make our money selling things that are bad for people,” Munger, 97, stated earlier this month at  Berkshire Hathaway’s annual shareholder meeting.

Warren Buffett, the CEO of Berkshire Hathaway additionally criticized Robinhood, saying he’s “looking forward” to studying on-line dealer’s S-1. Robinhood has “become a very significant part of the casino aspect of the casino group that has joined into the stock market in the last year or year and a half,” Buffet stated in the course of the conglomerate’s annual shareholder assembly, streamed exclusively on Yahoo Finance.

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Buffett, 90, stated it “would be interesting to watch” how the fee-free buying and selling app describes its supply of earnings within the S-1, declaring that Robinhood’s fee-free buying and selling has resulted in a surge in put and name choices buying and selling that’s “gambling on the price of Apple.”

“There’s nothing illegal about it. There’s nothing immoral, but I don’t think you’d build a society around people doing it,” Buffett added.

He continued: “If a group of us landed on a desert island knew we would never be rescued and I was one of the group and said, ‘I’ll set up an exchange over here and I’ll trade our corn futures and everything around it,’ I think the degree to which a very rich society can reward people who know how to take advantage, essentially, of the gambling instincts of not only the American public, the worldwide public, it’s not the most admirable part of the accomplishment.”

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But Robinhood didn’t waste time to hearth again on the legendary traders by way of a blog post:

“If the last year has taught us anything, it is that people are tired of the Warren Buffetts and Charlie Mungers of the world acting like they are the only oracles of investing. And at Robinhood, we’re not going to sit back while they disparage everyday people for taking control of their financial lives.”

Shark Tank investor Kevin O’Leary, nonetheless, has a unique view from Warren Buffet and Charlie Munger. He known as Robinhood a “misunderstood platform.”

“I think what both Warren and Charlie may not have considered is Robinhood, with its 20-plus million accounts, has done a great service for people who never invested in a stock before,” O’Leary added.

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Robinhood, which has plans to become a publicly traded company this yr, got here beneath heavy criticism and drew Congressional and regulatory scrutiny within the wake of a trading frenzy in February surrounding meme shares GameStop (GME) and AMC (AMC).

The buying and selling app was additionally hit with class action lawsuits by prospects who accused Robinhood of favoring Wall Street execs over retail traders when it positioned non permanent buying and selling curbs on these shares.

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