“There is nothing illegal about it, there is nothing immoral. But I don’t think you are building a society around people who do it,” he said.
Buffett is not a fan of the company’s business model, he added. The app allows people to do multiple stock trades for free per day, but instead make money from options trading and order flow income that big market makers pay Robinhood to execute trades .
Munger went a step further, saying that it is “horrible that something like this attracts the investment of civilized men and decent citizens. This is profoundly wrong.”
Robinhood quickly retaliated.
“There is an old guard who doesn’t want average Americans to have a seat at the Wall Street table to resort to slurs,” the company said in a statement on Saturday that did not mention Buffett or Munger. by name.
“The adversaries of this future and of change are generally those who have enjoyed abundant privileges in the past and do not want those privileges to be disrupted,” Robinhood added, saying “critics are unhappy” and “the news generation of investors is not a ‘casino group.’ “
“Two of the most iconic investors insulted a new generation this weekend. Why? Because we’re doing things in a new way,” wrote Jacqueline Ortiz Ramsay, public policy communications manager at Robinhood, in the post.
Ramsay added that “People are tired of the Warren Buffetts and Charlie Mungers of the world acting like they’re the only oracles of investing. And at Robinhood, we’re not going to sit idly by as they denigrate ordinary people for taking control of their finances. of their lives. “
She noted that “Robinhood has made investing simpler and more accessible to more people” and that “it is clear that the elites have benefited from a stock market which has prevented many families from participating as they accumulated. enormous wealth thanks to decades of investment “.
The comments are another sign of how defensive Robinhood has been lately.