Charlie Munger is not shy about his thoughts on Robinhood.
In an interview with CNBC that aired Tuesday, Munger, 97, continued a spat between Berkshire Hathaway Inc. executives and the trading platform, saying the company is “beneath contempt,” according to a transcript of the interview, which also featured Berkshire Chief Executive Officer Warren Buffett.
Robinhood is a “gambling parlor masquerading as a respectable business,” Munger added.
Buffett was quick to pile on, saying the company is not encouraging people to buy low-cost index funds. “Instead, you’ll get advice on how you can trade options,” the billionaire said.
Munger said the company is “telling people they aren’t paying commissions when the commissions are simply disguised in the trading. It’s basically a sleazy, disreputable operation.”
In February, Robinhood said Munger’s comments comparing retail investors to “racetrack bettors” were “disappointing and elitist.” And in May, after Buffett said the online brokerage contributed to the stock market’s “casino aspect,” Robinhood said “people are tired of the Warren Buffetts and Charlie Mungers of the world acting like they are the only oracles of investing.”
This article was provided by Bloomberg News.