The “God of Stock” Warren Buffett’s mentor, Bars County Vice Chairman Charlie Munger (Charlie Munger) on Wednesday (24) to attend the shareholders meeting, the retail investors of the crazy speculative trading behavior issued a warning, and at the same Time that Robinhood and other commission-free trading platform is one of the reasons for the market bubble.
Munger argued that investors should not believe that commission-free trading platforms are really “free” because they attract many “new gamblers” and earn commissions and other income from them.
In fact, Robinhood has been accused by critics of promoting a gamified style of investing, while these commission-free trading platforms resell their clients’ trading traffic to other investment institutions to generate revenue.
Regarding the GameStop (GME) “short position” incident earlier, Munger believes that investors are using the liquid stock market to gamble, just like betting on horses. GME shares closed at $91.71 on Wednesday, up 104.12 percent, but still at a distance from the record high of $483 set on Jan. 28.
Munger said, in his view, value investing will never go out of fashion, saying he would rather hold a few stocks that he knows well and has an “edge” than hold 100 stocks.
For bitcoin recently surged, Munger said, will not be like the electric car maker tesla (Tesla) to buy bitcoin, and that bitcoin volatility is too high, it is difficult to become a global trading medium. He advised investors not to buy bitcoin or Gold.
In addition, he warned Wall Street of the recent speculative frenzy through “SPACs” (special purpose acquisition companies) as a sign of a market bubble, saying bluntly that the world might be better off without SPACs.
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