Berkshire Hathaway Vice Chairman Charlie Munger blasted inventory buying and selling app Robinhood on Saturday, pronouncing 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 glaring that one thing like that used to be going to occur?” Munger stated at Berkshire Hathaway’s annual shareholder assembly Saturday.
Munger lambasted what he characterised as Robinhood’s “non permanent playing and massive commissions and hidden kickbacks and so forth.”
Robinhood does now not price customers fee and generates a majority of its earnings from “cost for order drift,” the back-end cost brokerages obtain for steering purchasers’ trades to marketplace makers.
“It used to be disgusting,” Munger stated. “Now it is unraveling. God is getting simply.”
Charlie Munger on the Berkshire Hathaway press convention, April 30, 2022.
CNBC