Charlie Munger says Robinhood is just ‘cleaning up’ for ‘disgusting’ behaviors
Berkshire Hathaway Vice President Charlie Munger blew up the stock trading app Robin Hood hero on Saturday, saying that the company is now “clarifying”.
“It’s easy to abuse a good idea. … Look what happened to Robinhood from its peak to its trough,” Munger said at Berkshire Hathaway’s annual shareholder meeting on Saturday. .
Munger praises what he describes as “short-term gambling and big commissions and hidden kickbacks etc” by Robinhood.
Robinhood does not charge user commissions and generates most of its revenue from “pay for order flow”, which the back-paying brokers receive to direct client trades to the creators. market.
“It’s disgusting,” Munger said. “Now it’s unraveling. God is getting fair.”
Charlie Munger during a press conference in Berkshire Hathaway, April 30, 2022.
CNBC