Confrontation of generations or philosophies? App Robinhood takes on magnate Warren Buffett

15 minutes. The US stock market ‘app’ Robinhood this weekend became the object of criticism by veteran businessman Warren Buffett, who considered it similar to a “casino”, to which this Monday he responded by describing it as an “old guard that fights because things stay the same. “

Buffett, 90, starred in the annual shareholders meeting of his conglomerate Berkshire Hathaway on Saturday. As usual, there he addressed various topics, including the massive arrival of small investors to the market thanks to brokerage platforms such as Robinhood.

Robinhood, the pioneering app in the US that led others to eliminate their commissions, “became a very important part of the casino look, from the casino group, which joined the stock market in the last year or year and a half, “coinciding with the pandemic, noted the investment guru known as the” oracle of Omaha. “

Robinhood Response

In an entry Monday on Robinhood’s corporate blog, its head of public policy communications, Jacqueline Ortiz Ramsay, said the company, which aims to “democratize” investment, “you won’t sit around while normal people are put down for taking control of their financial lives“.

“If the last year has taught us anything, it’s that people are tired of the Warren Buffetts and Charlie Mungers – the vice president of Berkshire Hathaway – of the world acting like they are the only investment oracles,” he wrote.

Ortiz considered that the “elites” benefited for decades from a market that left many families “on the margins”, unable to participate. He also recounted first-hand the “inherited disadvantages” faced in this regard by middle-class families across the country.

“Suddenly, Robinhood opened the doors of the markets to normal people, annoying the old guard that struggles to keep things the same. But the change is bullish,” he added, assuring that his company is providing equal opportunities and access.