Here's What Legendary Investor Charlie Munger Would Change About the Stock Market

of Warren Buffett said that he wishes fewer investors treated the stock market like a casino.

Munger says that if he were"dictator for a day," he would break up what he calls the"marriage" that is investors who are looking to build long-term wealth and those who are focused on short-term gains putting their money in the same stock market. "When I was at the Harvard Law School we seldom traded 1 million shares in a day; now we trade billions," he told CNBC's Becky Quick."We don't need a stock market that liquid."

In his ideal world, Munger said there would be"some kind of tax" on short-term gains that would incentivize investors to hold onto their stocks for longer and reduce liquidity. Munger said that current liquidity levels — meaning the ease with which stocks can be sold for cash — has created"wretched excess and danger for the country," comparing the massive amounts of money moving around every day to"people getting drunk at a party" and not thinking about the"consequences."to liken day trading and stock picking to gambling. Experts have warned that the ease of use of trading apps make it easier for users to lose large sums of money, fast.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Japan’s Stock Market Plans Revamp to Draw More InvestorsThe Tokyo Stock Exchange recently unveiled its biggest overhaul in 60 years that includes tougher standards for its top tier, but some foreign investors say the real problem is the entire edifice of corporate management in the country.
Source: WSJ - 🏆 98. / 63 Read more »