This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
Robinhood is not taking a blast of recent high-profile criticism lying down.
A day after Charlie Munger, vice chairman of the Warren Buffet-led Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), sharply criticized the securities trading platform and its ilk, Robinhood hit back on Thursday.
“In one fell swoop an entire new generation of investors has been criticized and this commentary overlooks the cultural shift that is taking place in our nation today,” the company wrote in a pair of tweets and in an official statement.
It added that, “To suggest that new investors have a ‘mindset of racetrack bettors’ is disappointing and elitist.”
Robinhood is referring to Munger’s remark that the Robinhoods of this world have promulgated “a culture which encourages as much gambling in stocks by people who have the mindset of racetrack bettors.”
“It’s a dirty way of making money,” he added.
Munger, who was instrumental in the establishment of Berkshire Hathaway and is constantly referred to by Buffett as the famed investor’s partner, made the remarks during the latest annual meeting of the Daily Journal. Munger is the media company’s chairman.
Robinhood has come under scrutiny for its conduct during the recent high-profile bull run of GameStop Corp (NYSE: GME) shares. Munger believes that modern, zero-commission trading platforms like Robinhood basically encourage reckless momentum trading by unseasoned investors.
The investing world seems divided between Robinhood supporters and those who hew more toward Munger’s opinion. On Thursday, noted investor and pundit Jim Cramer tweeted that: “The attack on the Robinhood generation by someone who I respect is painful. I have watched young people get involved with stocks and put them away and show great promise. Insulting.”
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- Is the Reddit army planning another GameStop (NYSE:GME) short squeeze?
- Here’s why GameStop stock just exploded higher
- GameStop CFO resigns
- Reddit’s ‘Roaring Kitty’ doubled his stake in GameStop (NYSE:GME)
- How CBA (ASX:CBA)’s CommSec expanded its millennial footprint
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Robinhood fires back at Berkshire Hathaway’s Charlie Munger over criticism appeared first on The Motley Fool Australia.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
from The Motley Fool Australia https://ift.tt/3pVGTqS
Leave a Reply