Facebook with Latestnigeriannews  Twieet with latestnigeriannews  RSS Page Feed
Home  |  All Headlines  |  Punch  |  Thisday  |  Daily Sun  |  Vanguard   |  Guardian  |  The Nation  |  Daily Times  |  Daily Trust  |  Daily Independent
World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  More Channels...

Viewing Mode:

Archive:

  1.     Tool Tips    
  2.    Collapsible   
  3.    Collapsed     
Click to view all Entertainment headlines today

Click to view all Sports headlines today

Warren Buffett slammed SPACs and Robinhood for encouraging gambling on stocks at Berkshire Hathaway's annual meeting

Published by Business Insider on Sun, 02 May 2021


<p><strong><img src="https://static1.businessinsider.com/image/5e25895c3ac0c9452948fd7b-2400/rtx9t1a.jpg" border="0" alt="warren buffett" data-mce-source="REUTERS/Mario Anzuoni" data-mce-caption="Warren Buffett, CEO of Berkshire Hathaway, takes part in a conversation on leadership and the economy at The Women's Conference 2008 in Long Beach, California October 22, 2008."></strong></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><ul><li><strong>Warren Buffett criticized SPACs and Robinhood at Berkshire Hathaway's annual meeting.</strong></li><li><strong>The investor said they encourage gambling and treating the stock market like a casino.</strong></li><li><strong>Charlie Munger, Buffett's right-hand man, damned both trends as well.</strong></li><li><strong><strong><a href="https://www.businessinsider.com/'hprecirc-bullet">See more stories on Insider's business page</a>.</strong></strong><hr></li></ul><p>Warren Buffett blasted special-purpose acquisition companies (SPACs) and the Robinhood trading app for encouraging gambling on stocks at <a href="https://markets.businessinsider.com/currencies/news/warren-buffett-charlie-munger-berkshire-hathaway-annual-meeting-live-updates-2021-5-1030373616">Berkshire Hathaway's annual meeting on Saturday</a>.</p><p>The famed investor and Berkshire CEO said that SPACs, also known as blank-check companies, were taking advantage of amateur investors and making unrealistic promises. "You stick a famous name on it and you can sell almost anything," he said.</p><p>Buffett's right-hand man, Charlie Munger, said that the proliferation of SPACs was a "moral failing" to an extent.</p><p>"The easy money made by SPACs and derivatives and so onyou push that to excess, it causes horrible problems for the civilization."</p><p>Buffett bemoaned the fact that Wall Street profits most when markets are rife with speculation.</p><p>"You have this incredible, huge asset to humanity but it really makes its money when people are doing stupid things," he said.</p><p>Buffett said that a rising number of people are treating the stock market like a casino, and reiterated his analogy that <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-warned-against-speculating-day-traders-dont-care-2020-6-1029347328">day traders and speculators are like Cinderella at the ball</a>.</p><p>"More people are entering the casino than are leaving everyday," he said. "It creates its own reality for a while, and nobody tells you when the clock will strike 12 and it all turns to pumpkins and mice."</p><p>Buffett also shared his thoughts on Robinhood, which many amateur investors and day traders have flocked to in recent months.</p><p>"It's become a very significant part of the casino group that has joined to the stock market" over the past 12 to 18 months, Buffett said.</p><p>The investor doesn't see buying and selling put and call optionsleveraged bets on whether stocks and other assets will rise or fall in value over a period of timeas illegal or immoral. "But I don't think you build a society around people doing it," he said.</p><p>Munger went further in criticizing Robinhood and other trading apps for enabling speculation.</p><p>"It's not just stupid, it's shameful," he said. "It's deeply wrong."</p><p>Robinhood didn't immediately respond to a request for comment from Insider.</p><p><a href="https://markets.businessinsider.com/news/stocks/warren-buffett-slams-spacs-robinhood-market-speculation-berkshire-hathaway-meeting-2021-5-1030373638#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/doomsday-prepper-million-dollar-condo-converted-missile-silo-2019-3">Inside a $3 million doomsday condo that can sustain 75 people for 5 years</a></p>
Click here to read full news..

All Channels Nigerian Dailies: Punch  |  Vanguard   |  The Nation  |  Thisday  |  Daily Sun  |  Guardian  |  Daily Times  |  Daily Trust  |  Daily Independent  |   The Herald  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  New Telegraph  |  Peoples Daily  |  Blueprint  |  Nigerian Pilot  |  Sahara Reporters  |  Premium Times  |  The Cable  |  PM News  |  APO Africa Newsroom

Categories Today: World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Columns  |  All Headlines Today

Entertainment (Local): Linda Ikeji  |  Bella Naija  |  Tori  |  Pulse  |  The NET  |  DailyPost  |  Information Nigeria  |  Gistlover  |  Lailas Blog  |  Miss Petite  |  Olufamous  |  Stella Dimoko Korkus Blog  |  Ynaija  |  All Entertainment News Today

Entertainment (World): TMZ  |  Daily Mail  |  Huffington Post

Sports: Goal  |  African Football  |  Bleacher Report  |  FTBpro  |  Kickoff  |  All Sports Headlines Today

Business & Finance: Nairametrics  |  Business Insider  |  Forbes  |  Entrepreneur  |  The Economist  |  BusinessTech  |  Financial Watch  |  BusinessDay  |  All Business News Headlines Today

Technology (Local): Techpoint  |  TechMoran  |  TechCity  |  Innovation Village  |  IT News Africa  |  Technology Times  |  Technext  |  Techcabal  |  All Technology News Headlines Today

Technology (World): Techcrunch  |  Techmeme  |  Slashdot  |  Wired  |  Hackers News  |  Engadget  |  Pocket Lint  |  The Verge

International Networks:   |  CNN  |  BBC  |  Al Jazeera  |  Yahoo

Forum:   |  Nairaland  |  Naij

Other Links: Home   |  Nigerian Jobs