Berkshire Hathaway Vice Chairman Charlie Munger blasted inventory buying and selling app Robinhood on Saturday, saying the corporate is now “unraveling.”
“It’s so easy to overdo a good idea. … Look what happened to Robinhood from its peak to its trough. Wasn’t that pretty obvious that something like that was going to happen?” Munger mentioned at Berkshire Hathaway’s annual shareholder assembly Saturday.
Munger lambasted what he characterised as Robinhood’s “short-term gambling and big commissions and hidden kickbacks and so on.”
Robinhood doesn’t cost customers fee and generates a majority of its income from “payment for order flow,” the back-end cost brokerages obtain for directing shoppers’ trades to market makers.
“It was disgusting,” Munger mentioned. “Now it’s unraveling. God is getting just.”