Berkshire Hathaway Vice Chairman Charlie Munger blasted inventory trading app Robinhood on Saturday, saying the firm is now “unraveling.”
“It’s really easy to overdo a good suggestion. … Look what occurred to Robinhood from its peak to its trough. Wasn’t that fairly apparent that one thing like that was going to occur?” Munger stated at Berkshire Hathaway’s annual shareholder assembly Saturday.
Munger lambasted what he characterised as Robinhood’s “short-term playing and large commissions and hidden kickbacks and so forth.”
Robinhood doesn’t cost customers fee and generates a majority of its income from “cost for order stream,” the back-end cost brokerages obtain for directing purchasers’ trades to market makers.
“It was disgusting,” Munger stated. “Now it is unraveling. God is getting simply.”
Charlie Munger at the Berkshire Hathaway press convention, April 30, 2022.
CNBC