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May 3 - warren buffet says robinhood has turned the stock market into casino



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 2 weeks ago '11        #1
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May 3 - warren buffet says robinhood has turned the stock market into casino
 

 
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Warren Buffett said Robinhood is promoting casino-like behavior in the stock market.
Robinhood has “become a very significant part of the casino aspect, the casino group, that has joined into the stock market in the last year or year and a half,” Buffett said.
Buffett said he was unhappy to learn how much short-term option activity there was in Apple, for example. He said he expected a lot of that activity is coming through Robinhood.


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Legendary investor Warren Buffett believes millennial-favored stock trading app Robinhood is contributing to the speculative, casino-like trading activity in the stock market and benefitting from it.

Robinhood has “become a very significant part of the casino aspect, the casino group, that has joined into the stock market in the last year or year and a half,” Buffett said at Berkshire Hathaway’s annual meeting on Saturday.

The “Oracle of Omaha” also said he is looking forward to reading Robinhood’s pre-initial public offering SEC S-1 filing as the company nears it public debut, expected in the first half of 2021. The company, which pioneered zero-commission trading, is seen as the main gateway for young investors to access the markets.

“American corporations have turned out to be a wonderful place for people to put their money and save but they also make terrific gambling chips,” said Buffett. “If you cater to those gambling chips when people have money in their pocket for the first time and you tell them they can make 30 or 40 or 50 trades a day and you’re not charging them any commission but your selling their order flow or whatever...I hope we don’t have more of it.”

Robinhood — whose mission is to “democratize investing” — is often criticized for its gamification of investing. The Silicon Valley start-up found itself in the middle of a firestorm in January amid the short squeeze in GameStop, which was partially fueled by Reddit-driven retail investors. The app has take steps to disband this reputation, be eliminating the confetti animation when investors make their first trade.

Buffett said he was unhappy to learn short-term stock options activity in Apple’s stock was surging. He said he expected a lot of that activity is coming through Robinhood.

Robinhood’s user growth has been explosive in 2020 and 2021. Millions of new investors jumped into the market during the pandemic, and millions more have joined in 2021. The stock trading app Robinhood added nearly 6 million clients in the first two months of the year, according to estimates from JMP Securities.

“There’s nothing illegal about it, there’s nothing immoral but I don’t think you’d build a society around people doing it,” said Buffett.

“The degree to which a very rich society can reward people who now know how to take advantage essentially of the gambling instincts of not only the American public but the worldwide public, it’s not the most admirable part of the accomplishment,” said Buffett.

Berkshire Hathaway’s Vice Chairman Charlie Munger was less gentle with his description of Robinhood.

“I think it’s just God awful that something like that brought investments from civilized men and decent citizens,” Munger said. “It’s deeply wrong. We don’t want to make our money selling things that are bad for people,” Buffett’s right-hand-man added.

Robinhood defended its mission and the future of retail investing following Buffett’s comments.

“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,” a Robinhood spokesperson told CNBC. “The future is diverse, more educated and propelled by engaging technologies that have the power to equalize. Adversaries of this future and of change are usually those who’ve enjoyed plentiful privileges in the past and who don’t want these privileges disrupted. Their criticisms are unfortunate but they prove why Robinhood’s mission is in fact critical.”

“The new generation of investors aren’t a ‘casino group.’ They are tearing down old barriers to investing and taking control of their financial futures. Robinhood is on the right side of history,” the spokesperson added.

visit this link https://www.cnbc.com/2021 .. investors.html
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147 comments
 

 2 weeks ago '20        #2
RockyII 
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He’s just mad normal people can trade now too...
+129   

 2 weeks ago '06        #3
bigkilla 
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Stock market has always been a casino where the top has controlled what happens.

GameStop was a prime example of that.

This is what happens when you hold people back with bullsh*t for years... they get desperate and put their money in sh*t hoping for it to work out.

Government been on bullsh*t giving a few hundred bucks while shutting down businesses and etc.. no sh*t they're going to take whatever pity few bucks they get they will try to put that in the market to grow.
+60   

 2 weeks ago '06        #4
bigkilla 
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 RockyII said
He’s just mad normal people can trade now too...
I genuinely don't think he's mad. He has the brightest minds and biggest vultures working for him 24/7. It's easy money for him.
+9   

 2 weeks ago '18        #5
ChrisPartlowFro 
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 RockyII said
He’s just mad normal people can trade now too...
Free trading existed before Robinhood....
+21   

 2 weeks ago '04        #6
Tikyle2 
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 RockyII said
He’s just mad normal people can trade now too...
Please tell me how normal people couldn't trade before Robinhood? What have they brought to the table or offer that other brokerage accounts do not offer? And I'm not talking crypto, I mean strictly in the realm of the stock exchange.
+10   

 2 weeks ago '18        #7
ChrisPartlowFro 
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He’s right. The average person wants to invest in an individual stock with hopes of getting rich. The average investors doesn’t understand what good expected returns are in the context of the market. And chiefly, the average investors doesnt understand that everyone makes money in a bull market.
The average investor doesn’t understand time horizons...
People don’t understand Fundamentals. We saw that with AMC and GameStop.

The idea that Warren would be “mad” is hilarious. This dude has put out investment guidance for decades and more importantly, this is the dude who was going to buy Lehman, potentially, and you think he gives a fu*k about whether retail traders can get in on time-delayed pricing? That’s laughable.


Last edited by ChrisPartlowFro; 05-03-2021 at 08:43 AM..
+28   

 2 weeks ago '17        #8
Naga Sadow  topics gone triple plat - Number 1 spot x18
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Sounds like he's salty that average people are now playing the game.
+19   

 2 weeks ago '18        #9
Lord God  topics gone triple plat - Number 1 spot x13
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A more engaged populace scares the elite.

Plain & simple.
+25   

 2 weeks ago '04        #10
ItAlY2BkLyN 
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losing control of the game terrifies these dinosaurs.
+28   

 2 weeks ago '04        #11
abstractq 
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hes 100% right. . .
+5   

 2 weeks ago '11        #12
Sin  topics gone triple plat - Number 1 spot x29 OP
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 Tikyle2 said
Please tell me how normal people couldn't trade before Robinhood? What have they brought to the table or offer that other brokerage accounts do not offer? And I'm not talking crypto, I mean strictly in the realm of the stock exchange.
platforms like e trade charged $5 per transaction before robinhood

that $10 took a lot of profit to small investors
+11   

 2 weeks ago '18        #13
DUCEDUCE  topics gone triple plat - Number 1 spot x1
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I gambled on AMC and I made some money. I should have sold when they were on top. But I know there must be a ton of bagholders. I look at wallstreetbets lot of people got in at the top and lost a lot of money.

Buffett is right people are treating the stock market like a casino. No one bought GME or AMC because they believed in the company they bought it to sell it high. We all know GME is not worth what its trading at.

Something alot of these traders dont realize the giant tax bill coming.
+9   

 2 weeks ago '12        #14
TrillSwag  topics gone triple plat - Number 1 spot x1
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 RockyII said
He’s just mad normal people can trade now too...
Why would he be mad majority of those traders lose money loool . The more stupid money in the market the better for the smart ones
+7   

 2 weeks ago '21        #15
MrDoubtfire 
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He big mad. fu*k him.
+1   

 2 weeks ago '12        #16
TrillSwag  topics gone triple plat - Number 1 spot x1
Props total: 50605 50 K  Slaps total: 7729 7 K
 ChrisPartlowFro said
He’s right. The average person wants to invest in an individual stock with hopes of getting rich. The average investors doesn’t understand what good expected returns are in the context of the market. And chiefly, the average investors doesnt understand that everyone makes money in a bull market.
The average investor doesn’t understand time horizons...
People don’t understand Fundamentals. We saw that with AMC and GameStop.

The idea that Warren would be “mad” is hilarious. This dude has put out investment guidance for decades and more importantly, this is the dude who was going to buy Lehman, potentially, and you think he gives a fu*k about whether retail traders can get in on time-delayed pricing? That’s laughable.
Exactly boxden loves stupid hot takes. Yeah he’s really jealous of Timmy blowing his stimulus on weed stocks and penny stocks
Berkshire Hathaway is sitting on a 150 billy in cash.
+7   

 2 weeks ago '20        #17
RockyII 
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 TrillSwag said
Why would he be mad majority of those traders lose money loool . The more stupid money in the market the better for the smart ones
He’s mad because it’s one of those rich :Iseeyou2: people clubs.. they don’t want us regular folk in their club
-3   

 2 weeks ago '20        #18
RockyII 
Props total: 8983 8 K  Slaps total: 1196 1 K
 Tikyle2 said
Please tell me how normal people couldn't trade before Robinhood? What have they brought to the table or offer that other brokerage accounts do not offer? And I'm not talking crypto, I mean strictly in the realm of the stock exchange.
The simple fact that it’s a rich people club.. they don’t want you or I in the club.. remember when you and your friends were gonna go somewhere and your mom said to take your baby brother? Remember that feeling? That’s the same feeling they have about us... we just aren’t in their club
+10   

 2 weeks ago '18        #19
S-Class 
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If Nas crypto currency Scarface than I’m Robinhood Rick Ross
+6   

 2 weeks ago '12        #20
TrillSwag  topics gone triple plat - Number 1 spot x1
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 RockyII said
He’s mad because it’s one of those rich :Iseeyou2: people clubs.. they don’t want us regular folk in their club
The stock market has been accessible to the everyday person for decades. He literally wrote books teaching people how to make money in the market. That doesn’t sound like exclusivity to me.
+6   

 2 weeks ago '04        #21
abstractq 
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 RockyII said
He’s mad because it’s one of those rich :Iseeyou2: people clubs.. they don’t want us regular folk in their club
Fam Robin hood does not get you into any club... lmao you think because you can purchase gamestop on a time delay without paying a fee that now you run with the wolves?

You're still a retail investor... guys like Buffett operate on a different plane
+8   

 2 weeks ago '12        #22
Superstarbrown7  topics gone triple plat - Number 1 spot x1
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He’s right but he’s also mad that average person can play the game
+2   

 2 weeks ago '12        #23
TrillSwag  topics gone triple plat - Number 1 spot x1
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 abstractq said
Fam Robin hood does not get you into any club... lmao you think because you can purchase gamestop on a time delay without paying a fee that now you run with the wolves?

You're still a retail investor... guys like Buffett operate on a different plane
These dudes are really dumb. Buffet will get stocks at prices retailers could only dream of. Just look at any IPO for example by the time it’s up for retailers it already 2-3x the price. Then comes the dumb retailers who will inflate it more and be left bag holding for years
+1   

 2 weeks ago '04        #24
abstractq 
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I also don't get this idea that "now regular people can play"

I bought my first stocks when i was like 24 years old making 20-25k a year
+5   

 2 weeks ago '05        #25
dblockallday 
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 Tikyle2 said
Please tell me how normal people couldn't trade before Robinhood? What have they brought to the table or offer that other brokerage accounts do not offer? And I'm not talking crypto, I mean strictly in the realm of the stock exchange.
the biggest thing to me is the ease of use.

most brokers are not nearly as simple or video game like compared to RH.

I have accounts with RH, Webull, M1 finance and Fidelity.

RH has the best and easiest to use interface by far - it's not even close.
+5   



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