Robinhood Financial – known for catering to small retail investors - hit back Monday against comments from one of the world’s richest men.
On Saturday, Warren Buffett, the revered billionaire investor known as the “Oracle of Omaha,” likened Robinhood’s inexperienced day trading clients to …. gamblers.
The retail brokerage became a household name this year when some of its traders drove up prices of GameStop, AMC and other “meme stocks."
At his company Berkshire Hathaway’s annual shareholders meeting held virtually on Saturday, his business partner Charlie Munger called it “deeply wrong.”
Robinhood shot back. Its head of public policy communications said in a blog post Monday, “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 .… we're not going to sit back while they disparage everyday people for taking control of their financial lives."
By driving up shares of meme stocks, Robinhood traders humbled some Wall Street hedge funds in January who had bet on those stocks’ decline. Robinhood says few of its customers engage in risky trades.