The fallout from a Warren Buffett tongue lashing continued Monday when Robinhood clapped back at the Berkshire Hathaway CEO, asserting strong opinions of their own.
Buffett and his right-hand man, Charlie Munger, spoke out on the “gambling” problem in today’s stock market at Berkshire Hathaway’s general meeting Saturday.
But Robinhood wants to re-set the narrative, and offered its view – not only on the market but also on Buffett and Munger.
Communications chief Jacqueline Ortiz Ramsay posted the company’s opposition in a blog.
“If the last year has taught us anything, it is that people are tired of the Warren Buffetts and Charlie Mungers of the world acting like they are the only oracles of investing,” Ramsay wrote. “And at Robinhood, we’re not going to sit back while they disparage everyday people for taking control of their financial lives.”
The Robinhood business is thriving as its app saw millions of downloads during the first three months of this year.
Most of those, it seems, are the subjects of Buffett’s ire. The billionaire investor called them “casino participants.”
Munger questions their moral standing, saying the situation is “godawful that something like that would draw investment from civilized man and decent citizens.”
The brokerage doubled down on its belief that – like its name, Robinhood – it’s a device for all citizens to join a world only the rich previously enjoyed.
“It is clear that the elites benefited from a stock market that kept many families sidelined from participating while they amassed huge wealth from decades of investing — driving a deep wedge between the haves and have-nots,” Ortiz Ramsay wrote in the blog.
“Suddenly, Robinhood and other online trading platforms have opened the doors of financial markets to everyday people, deeply unsettling the old guard who will fight to keep things the same.”