Robinhood Markets on Thursday went back at criticism leveled against him a day earlier by Charlie Munger, Berkshire Hathaway vice-chairman and close partner of Warren Buffett.
The popular trading platform was “created to allow people who do not have access to generational wealth or the resources that come with it to start investing in the U.S. stock market,” said Robinhood spokeswoman Jacqueline Ortiz Ramsay , reiterating the company’s credo of democratizing market access for average investors.
“To suggest that new investors have minds [betters]a disappointment and elitist. It should be noted that we are seeing market investors begin to diversify, and that education and awareness of investment values is making a difference further into previously untapped generations. , ”Ramsay wrote.
The response comes after Munger said, “it is very foolish to have a culture that encourages so much game in stocks with mind-boggling people.… It is a dirty way of money to do, ”refers to the Robinhood.
Munger was speaking at the Los Angeles-based Daily Journal shareholders ’annual meeting, which was broadcast live by Yahoo Finance.
Munger’s famous comments speak in reference to GameStop GME,
a brief uproar that raged on Wall Street a month ago, as an army of individual investors gathered on social media platforms like Reddit and Discord, bolstered the overall market by spending a short bet professional investors.
The incident led to a hearing last week before the House Financial Services Committee, where Robinhood Chief Executive Vlad Tenev defended a decision in late January to ban trading in “meme stocks”. as they are called, including GameStop and AMC Entertainment Holdings AMC,
GameStop exploded back into the news on Wednesday as trading in the stock was halted, doubling its value in a day. He saw turbulent trading again on Thursday.
Markets eventually kicked back from the late January saga, but the big short-term tightening was accompanied by a bullish sentiment, adding Dow Jones industrial average DJIA,
the S&P 500 SPX,
and the Nasdaq Composite COMP,
they will have indices of their worst weekly declines from October.