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Berkshire Hathaway Vice Chairman Charlie Munger blasted stock trading app Robinhood on Saturday, saying the company 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 said at Berkshire Hathaway’s annual shareholder meeting Saturday.
Munger lambasted what he characterized as Robinhood’s “short-term gambling and big commissions and hidden kickbacks and so on.”
Robinhood does not charge users commission and generates a majority of its revenue from “payment for order flow,” the back-end payment brokerages receive for directing clients’ trades to market makers.
“It was disgusting,” Munger said. “Now it’s unraveling. God is getting just.”
