Robinhood, one of the most popular fintech apps, added three names to its Markets Board of Directors on June 1. The move is seen as part of a strategy to go public soon.
With its commission-free business model, the trading platform was able to attract young investors. In addition to this, the ongoing pandemic also helped boost its popularity when people were forced to stay at home. Young investors flocked-in to the platform, leading to the GameStop frenzy in January and the wild swings in crypto world.
At Berkshire Hathaway’s annual meeting in May, the Oracle of Omaha slammed Robinhood, saying the app promotes ‘casino-like behavior.’
“… Robinhood has become a very significant part of the casino aspect, the casino group, that has joined into the stock market in the last year or year and a half...," Buffet said.
Buffett’s right hand man, Charlie Munger, does not have good words for Robinhood either.
“It’s (Robinhood) deeply wrong," said Munger. "We don’t want to make our money selling things that are bad for people.”
Well-known politicians including Alexandria Ocasio-Cortez and Ted Cruz also called out Robinhood when the app briefly suspended the buying of GameStop and other stocks in January.
Watch the video above to know more.