Warren Buffett called SPAC a “killer” and criticized the stock-trading app Robinhood for promoting gambling during Berkshire Hathaway’s annual meeting in Los Angeles on Saturday.
Why is this important: Criticism by Buffet comes from SPACs or special acquisitions, and Robinhood has faced scrutiny from regulators after hitting a high note in the past year.
What they say: Buffett said at the event that SPACs “will not go on forever. But now the money is there and Wall Street is going to go where the money is. ”
- “SPAC has been working for a while and if you get famous you can sell almost anything,”; said Berkshire’s president and chief executive.
- Buffett’s longtime lieutenant Charlie Munger called the SPACs a “moral failure.” But it’s shameful, ”he said.
In Robinhood Buffet said, “Nothing is illegal, nothing is immoral. But I don’t think you will create a society. He said it was “Take advantage of society’s gambling instincts, and it’s not admirable.”
- The 90-year-old investor said he was looking forward to reading the company’s public offering filing.
- “It has become a very important part of the casino group that participated in the stock market for the last year or a year and a half,” Buffett said.
- Munger said it was “absolutely wrong” and that “God is huge to invest in civilized people and good citizens”.
The other side: “There was an old guard who didn’t want the average American to have a seat at the Wall Street table, so they would turn to contempt. Robin Hood said in an emailed statement.
- “The future is diverse, educated and driven by engaging technology that has the power to equalize. Opponents of this future and change are often those who have enjoyed many of the privileges in the past and are the ones who have the power to equalize. I don’t want these privileges to be interrupted.
- “Their criticisms are unfortunate. But they prove why Robin Hood’s mission is so important.
“Young investors are not” casino conglomerates. “They are breaking old barriers to investing and controlling their financial future. Robinhood is on the right side of history.”