‘Generational conflict’ over the US stock market
Charlie Munger pointed out that “stock is not a game”
Robin Hood refutes “The times have changed”
Richard Bernstein / Photo = Reuters
Richard Bernstein, a Wall Street veteran investor, criticized the investment behavior of the US’Robin Hood ants’, which recently surged. It is pointed out that most of them are trading at the level of gambling. On social media such as Reddit, there is a rebuttal that “old big players can’t recognize that the times have changed.”
According to Bloomberg News on the 3rd (local time), Bernstein pointed out in a report by Richard Bernstein Advisor, an asset manager he founded, that “there is a risk of so-called Robin Hood traders destroying enormous wealth in the stock market.”
Bernstein said, “The chances of success in day trading are only slightly higher than the odds of winning a bet on the front or back with a flip of a coin.” “It was,” he wrote in the report.
Bernstein also said that last week’s vice chairman Charlie Munger, Buckshire Hathaway, was right about the ant-investment craze. Vice-Chairman Munger is a long-time partner and investment friend of Warren Buffett, Chairman of Buckshire Hathaway.
Vice Chairman Munger said on the 24th of last month, “Some of the investment cultures these days that encourage each other in the online community while gambling stocks like horse racing are really stupid. Taking advantage of this, securities companies such as Robin Hood are making’dirty money’.” .
At the time, Vice Chairman Munger said, “Novice investors who are deluded by securities companies that claim free commissions like Robin Hood will regret it,” he said. “Especially those who are enthusiastic about buying stocks with debts will not end well.”
Bernstein wrote, “Some laughed at Munger’s point as’the words of an old man who doesn’t understand the stock market these days’, but the history of the stock market shows that Mr. Munger’s words are correct.” It is pointed out that it is easy to lose money if you make short-term investments mainly for soaring stocks.
“Excluding gold and commodity investments, spending time is an effective way to reduce your investment risk,” Bernstein explained. “Long-term investments reduce the chances of losing money in the market.”
In recent years, well-established and well-known investors in the United States have made comments that are concerned about the trading craze of private investors with little experience.
On the other hand, Robin Hood and others are refuting that the online single-shot investment culture is changing. Robin Hood previously commented on Mr. Munger’s criticism as “a remark that established investors have overlooked the recent change of investment culture among individual investors.” He then argued that “comparing investors who have entered the stock market with horse racing gamblers reflects the’eliteism’ of established investors.”
Reporter Sun Han-gyeol [email protected]
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