Berkshire Hathaway Vice Chairman Charlie Munger blasted inventory buying and selling app Robinhood on Saturday, announcing the corporate is now “unraveling.”
“It is so simple to overdo a good suggestion. … Glance what came about to Robinhood from its top to its trough. Wasn’t that lovely evident that one thing like that used to be going to occur?” Munger mentioned at Berkshire Hathaway’s annual shareholder assembly Saturday.
Munger lambasted what he characterised as Robinhood’s “temporary playing and large commissions and hidden kickbacks and so forth.”
Robinhood does no longer price customers fee and generates a majority of its income from “cost for order go with the flow,” the back-end cost brokerages obtain for guiding purchasers’ trades to marketplace makers.
“It used to be disgusting,” Munger mentioned. “Now it is unraveling. God is getting simply.”
Charlie Munger on the Berkshire Hathaway press convention, April 30, 2022.
CNBC
