On Saturday, Warren Buffett criticized stock trading platforms such as Robinhood that allow free buy and sell as a stimulus. “Impulse gambling”
“Nothing is illegal, nothing is immoral. But I don’t think you build a society around people who do that, ”he said at Berkshire Hathaway’s annual meeting, which has been held almost since this year because of the coronavirus, The Guardian reported.
Buffett lamented that many novice traders treat the market like a “casino”; and said picking a successful long-term stock was harder than it seems.
He pointed out that there were more than 2,000 auto companies in 1903, and although the automobile revolutionized most of society, the companies had gone out of business, according to The Guardian.
WARREN BUFFETT Experience the unexpected strength of our economy as a representative of BERKSHIRE.
“There’s more to buying stock than figuring out what is going to be an amazing industry in the future,” he said. “I just want to tell you it’s not as easy as it sounds.”
He said owning an S&P 500 index fund was a better bet for most people.
Robinhood has “become a very important part of casinos, a casino group that joined the stock market in the last year or a year and a half,” he said, according to CNBC.
Buffett said American companies can be a good place for a solid investment. But they also make great “gambling chips”.
“If you focus on those gambling chips when people have their pockets for the first time and you tell them they can trade 30 or 40 or 50 times a day and you won’t charge a commission.” Anything but a sale, an order process … I hope we don’t have more, ”CNBC reports.
The Robinhood app found itself in hot water earlier this year during GameStop buying frenzy.
The Berkshire meeting is normally held in Omaha and can attract approximately 40,000 investors, but it takes place in Los Angeles this year to represent Vice President Charlie Munger.
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Munger agrees with Buffett’s Robinhood assessment. “I think it’s terrible to have something like that, taking investment from people of good civilization and citizens,” he said, according to CNBC. A lot of us don’t want our money to sell things that are bad for people. ”