Robinhood hits back at Buffett for retail trading comments

(Reuters) - Retail-focused brokerage Robinhood Financial has hit back against comments by Warren Buffett who on Saturday likened the millions of inexperienced day traders who entered the stock market in the past year to gamblers. Speaking at Berkshire Hathaway Inc's annual meeting, Buffett said Robinhood has attracted, 'maybe set out to attract,' a large number of people who are just gambling on short-term price movements.

Reuters May 04, 2021 01:06:04 IST
Robinhood hits back at Buffett for retail trading comments

Robinhood hits back at Buffett for retail trading comments

(Reuters) - Retail-focused brokerage Robinhood Financial has hit back against comments by Warren Buffett who on Saturday likened the millions of inexperienced day traders who entered the stock market in the past year to gamblers.

Speaking at Berkshire Hathaway Inc's annual meeting, Buffett said Robinhood has attracted, "maybe set out to attract," a large number of people who are just gambling on short-term price movements. Buffett's long-time business partner, Charlie Munger, was more harsh, saying it was "deeply wrong".

"If the last year has taught us anything, it is that people are tired of the Warren Buffetts and Charlie Mungers of the world acting like they are the only oracles of investing," said a blog post https://robinhood.engineering/the-old-guard-of-investing-is-at-it-again-a8b870fbfd49 on Robinhood's website by its Head of Public Policy Communications Jacqueline Ortiz Ramsay published on Monday.

"And at Robinhood, we're not going to sit back while they disparage everyday people for taking control of their financial lives."

In a statement published by CNBC, Robinhood said that there is an "old guard that doesn't want average Americans to have a seat at the Wall Street table so they will resort to insults. The future is diverse, more educated and propelled by engaging technologies that have the power to equalize."

At the meeting, Buffett said: "There is nothing illegal to it, there's nothing immoral, but I don't think you build a society around people doing it," he said.

Munger's comment was: "It's just god-awful that something like that would draw investment from civilized man and decent citizens," he said. "It's deeply wrong. We don't want to make our money selling things that are bad for people."

Brokers like Robinhood Financial have attracted controversy this year as traders drove huge rallies in shares of video game retailer GameStop Corp, movie theater chain AMC Entertainment Holdings Inc and other companies despite no fundamental reason for the frenzy.

(Reporting by Shubham Kalia in Bengaluru; additional reporting by John McCrank; writing by Megan Davies; editing by David Evans)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

China's Ximalaya, Qiniu file for U.S. IPOs
News & Analysis

China's Ximalaya, Qiniu file for U.S. IPOs

(Reuters) -Ximalaya, backed by China's Tencent Holdings, filed for an initial public offering (IPO) in the United States on Friday, cashing in on growing demand as more people tune in to podcasts while staying at home during the pandemic. China's Qiniu Ltd, a cloud-based platform-as-a-service provider backed by Alibaba Group Holding Ltd, also filed paperwork for a U.S. IPO

Donerail pushes gaming headset maker Turtle Beach to explore a sale - sources
News & Analysis

Donerail pushes gaming headset maker Turtle Beach to explore a sale - sources

By Greg Roumeliotis (Reuters) - Donerail Group, an investment firm led by former activist hedge fund Starboard Value LP executive Will Wyatt, has amassed a stake in Turtle Beach Corp and is pushing the maker of gaming headsets to explore a sale, people familiar with the matter said on Friday. The move represents a bet that Turtle Beach could attract acquisition interest from peers such as Corsair Gaming Inc and GN Store Nord A/S, as the video game market continues to benefit from people looking for entertainment options at home during the COVID-19 pandemic

Analysis: New meme stocks swing as shorts and retail investors face off again
Business

Analysis: New meme stocks swing as shorts and retail investors face off again

By John McCrank, Saqib Iqbal Ahmed and Lawrence Delevingne NEW YORK (Reuters) - Recent volatility in a handful of so-called meme stocks is putting the spotlight back on the tussle between individual investors and short sellers, months after a wild ride in GameStop captivated Wall Street’s attention. Stocks that have notched big swings this month include laser-manufacturer MicroVision Inc, a favorite on Reddit’s popular WallStreetBets forum, whose shares have risen as much as 170% since April 20 before tumbling in recent days