“ ‘The frenzy is fed by people getting commissions and other revenues out of this new bunch of gamblers, and, of course, when things get extreme, you have things like that short squeeze … and it’s really stupid to have a culture which encourages [so] much gambling in stocks by people who have the mindset of racetrack bettors and, of course, it will create trouble, as it did.’ ”
So says Charlie Munger, Warren Buffett’s longtime business partner and vice chairman of Berkshire Hathaway, in a Wednesday interview with Yahoo Finance. The famously plain-spoken Munger made his comments in reference to the GameStop short selling chaos that gripped Wall Street a month ago, as an army of individual investors congregating on social-media platforms like Reddit and Discord, rattled the broader market by upending the short bets of professional investors.
The episode resulted in a hearing last week before the House Financial Services Committee, where the head of the popular trading platform Robinhood defended a decision in late January to temporarily restrict trading in so-called “meme stocks,” including GameStop GME, +103.94% and AMC Entertainment Holdings AMC, +18.05%. GameStop exploded back into the news Wednesday as trading in the stock, which doubled in value on the day, was repeatedly halted.
Markets eventually bounced back from the late January saga, but the epic short squeeze momentarily rattled their bullish demeanor, sending the Dow Jones Industrial Average DJIA, +1.35%, the S&P 500 SPX, +1.14% and the Nasdaq Composite COMP, +0.99% indexes to their sharpest weekly declines since October.
One could argue it's really stupid to short sell millions of dollars worth of stocks 🤷🏾♂️ Goes both ways • Invest At Your Own Risk • Don't Invest Money You're Not Willing To Lose
In poker, it’s called being a donkey. It’s dumb, screws up the betting psychology, and no one really likes it.
He's just salty because he had to work a lot harder for his money back in the day. Share the wealth. Respect to munger he has his old strategies which work. Newer strategies are being implemented. Need to adept and adopt or you're out of the race.
Because us poor folk can't understand the market enough to research and make smart decisions? We must just be betting? Well those same dummies wsbmod were smart enough to see what the big guys were doings and take A LOT of money from them.
I like this stonk❤️
notadeadcat
I think it is not gambling.
If you can't explain your investment in a stock to a 5-year-old in 2 minutes, you should not be buying it. *Most* of this Robinhood generation is only buying a stock because 'it's going up' or selling because 'it's going down.' (1/2)
He is old and obsolete and he will soon fade. No one will remember him in a few years. It is a new age the dinosaurs have fallen and it is the age of the mammals. A new time for growth and opportunity. Technology has put control in the hands of the common person. Our time is now.
This is our golf course you working class need to find another place to play. Don't you know WE are the 1%?
Fuck him, none of these people understand the real world. And honestly none of them could survive in it anymore they would get eaten alive. People need to begin to remember how much power we actually hold as a united people. Why do think all they like to do is divide us.
Who the fuck is gambling? We do our due diligence Charlie. When y’all say shit like this is just fires me up to take more of your fucking money. I not am sleeping for the rest of 2021... I’ll prove to you it’s not “gambling”.
Someone call her please!
For centuries the catholic church forbade folk from reading the bible so as to prevent misinterpretation. In retrospect it was about consolidating and holding power. Im sure that in this gentlemans mind there is only one correct way to buy and sell stocks.. his way.
“No one should believe Robinhood trades are free,” isn’t that a truth....calling retail trader as gamblers might be the bad idea but there is truth in his statement.
The old ass white money hoarders are just mad that the wealth is being distributed differently and they don't own the rights to being able to participate in trading. It is VERY clear based on the demo of people speaking about how 'dumb' everyone else is like 3rd graders.
Who the hell is this dinosaur?
Rich folk really do hate when us poor folk play by their rules and benefit. Understand that the market has always been a wealthy man's game and their terrified that us commoners are finally getting involved and doing well.
I disagree,,;)
At what point do we quit listening to old people with dementia
Stfu
It’s literally stupid how the 1% thinks. Greedy and self centred and entitled. The US stock market shouldn’t be the 1% only but everyone should contribute and get a cut of the pie.
Lmao. Another idiot expert telling how market works. HE HAS ZERO IDEA HOW MARKET WORKS. NO ONE CAN TELL U WHAT MARKET WILL DO. LEAVE IT THE FUCK ALONE AND LET US PLAY. THIS GUY KNOWS NOTHING ABOUT THE MARKET. THIS GUY KNOWS NOTHING ABOUT THE MARKET. THIS GUY KNOWS ZERO.
What an awful person
Robinhood makes money off your demise. They sell you 'culture' and hipster idiocy.
It's really stupid to have a culture of old men trying to say ANYTHING after they repeatedly botch the market, politics, basic human decency; pretty much every acceptable trait they very clearly lack.
Nothing like 1%-splaining
Oh Mortimer, the scenery is changing again.
Media constantly promoting GameofCons isn’t helping. $GME $TSLA $MSTR
That guy has forgot more about investing than most of us will ever know . Even if you don’t agree with him, u need to be quiet and listen .
Times they are a changin
lol, the wealth gap widens every year, him & his generational thinking needs to go
SizweDhlomo
whole stock market is a casino
It’s really stupid to not buy in GME right now
I am a big fan of Charlie Munger! Read his books to avoid some silly mistakes that I made in my early investing journey that costs me $120,000...it's painful to lose so much money at the beginning but treat it as a lesson to learn!
How’s about f*** off
That’s literally what the market has always been! It’s a racetrack of publicly traded companies, place your bets on fundamentals, technicals, inside info, news, and now memes. Get used to it boomer
These dinosaurs time on Earth are almost over and they can’t stop crying about handing over the reigns to younger, smarter and more savvy investors. Get fukt Boomer!
Old guard
Too old fashion
Hedge fund managers are worried
Rich folk hate it when regular folk make money. They prefer people dependent on their low paying jobs 🤷🏻♂️
I’m sure he’d be so wet to have been in GameStop today
He’s mad retail are bagging higher % then hedge funds
This guy is into munging
Just made $10k on $GME LATE DAY, so I’m giving away $100 to anyone who follows and retweets, first 20 DM’s
Of coarse he would say that . We can't have us common folk making money now can we. Guy looks as lost as JoeBiden Were all grown ups in this space, or will be after taking it a few times until we learn the game or quit playing.
Munger might like Hex.
“markets and IPOs should only be accessible by the old rich white men. “ - Charlie Munger’s inner thoughts.
An elite calling the peasants stupid.....wow, there’s something new. They want to squash us like a bug. We need to Neanderthal this thing to the moon.
We get the it... the market was perfect before GME and all young investors are gamblers 🙄
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I’m sure he’s seen worse then this in his lifetime and you imbeciles believe you know better. It’s so funny, it’s not funny.
In the words of Pink Floyd, “I’m alright Jack, keep your hands off of my stack”
I’ve never called anyone Boomer; but I’m considering it.
Didn’t read the article but looks like this guys stuck in 1970
Disagree, and I’m doubling down on that