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) - 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.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.