Robinhood is not taking a blast of recent high-profile criticism lying down.
A day after Charlie Munger, vice chairman of the Warren Buffet-led Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), sharply criticized the securities trading platform and its ilk, Robinhood hit back on Thursday.
"In one fell swoop an entire new generation of investors has been criticized and this commentary overlooks the cultural shift that is taking place in our nation today," the company wrote in a pair of tweets and in an official statement.
Image source: Getty Images.
It added that, "To suggest that new investors have a 'mindset of racetrack bettors' is disappointing and elitist."
Robinhood is referring to Munger's remark that the Robinhoods of this world have promulgated "a culture which encourages as much gambling in stocks by people who have the mindset of racetrack bettors."
"It's a dirty way of making money," he added.
Munger, who was instrumental in the establishment of Berkshire Hathaway and is constantly referred to by Buffett as the famed investor's partner, made the remarks during the latest annual meeting of the Daily Journal. Munger is the media company's chairman.
Robinhood has come under scrutiny for its conduct during the recent high-profile bull run of GameStop shares. Munger believes that modern, zero-commission trading platforms like Robinhood basically encourage reckless momentum trading by unseasoned investors.
The investing world seems divided between Robinhood supporters and those who hew more toward Munger's opinion. On Thursday, noted investor and pundit Jim Cramer tweeted that: "The attack on the Robinhood generation by someone who i respect is painful. I have watched young people get involved with stocks and put them away and show great promise. Insulting."
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