We don't want to make our money selling things that are bad for people," Buffett's right-hand man added. "I think it's just God awful that something like that brought investments from civilized men and decent citizens," Munger said. "The degree to which a very rich society can reward people who now know how to take advantage essentially of the gambling instincts of not only the American public but the worldwide public, it's not the most admirable part of the accomplishment," said Buffett.īerkshire Hathaway's Vice Chairman Charlie Munger was less gentle with his description of Robinhood. "There's nothing illegal about it, there's nothing immoral but I don't think you'd build a society around people doing it," said Buffett. The stock trading app Robinhood added nearly 6 million clients in the first two months of the year, according to estimates from JMP Securities. Millions of new investors jumped into the market during the pandemic, and millions more have joined in 2021. Robinhood's user growth has been explosive in 20. He said he expected a lot of that activity is coming through Robinhood. The Silicon Valley start-up found itself in the middle of a firestorm in January amid the short squeeze in GameStop, which was partially fueled by Reddit-driven retail investors. The app has taken steps to disband this reputation, by eliminating the confetti animation when investors make their first trade.īuffett said he was unhappy to learn short-term stock options activity in Apple's stock was surging. Robinhood - whose mission is to "democratize investing" - is often criticized for its gamification of investing. "If you cater to those gambling chips when people have money in their pocket for the first time and you tell them they can make 30 or 40 or 50 trades a day and you're not charging them any commission but you're selling their order flow or whatever.I hope we don't have more of it." "American corporations have turned out to be a wonderful place for people to put their money and save but they also make terrific gambling chips," said Buffett. The company, which pioneered zero-commission trading, is seen as the main gateway for young investors to access the markets. The "Oracle of Omaha" also said he is looking forward to reading Robinhood's pre-initial public offering SEC S-1 filing as the company nears its public debut, expected in the first half of 2021. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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