Robinhood fires back after Warren Buffett slams free-trading app
May 03, 2021 at 15:35
New York (CNN Business) Warren Buffett and Berkshire Hathaway (BRKB) vice chairman Charlie Munger are not big fans of short-term trading and the popular Robinhood app.
But it appears that Robinhood has no time for Buffett or Munger either.
Buffett said in Saturday's annual Berkshire Hathaway shareholder meeting that the rise of Robinhood is "a very significant part of the casino aspect" of the stock market in the past year.
"There's nothing illegal about it, there's nothing immoral.
But I don't think you build a society around people doing it," he said.
Buffett is not a fan of the company's business model, he added.
The app allows people to make multiple stock trades a day for free, instead making money from options trading and order flow revenue that big market makers pay Robinhood to execute trades.
Munger went a step further, saying that it is "God-awful that something like that would draw investment from civilized men and decent citizens.
It's deeply wrong."