Charlie Munger says the Robinhood trading app is justly ‘unraveling’ for ‘disgusting’ practices

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People wait in line for t-shirts at a pop-up kiosk for the online brokerage Robinhood along Wall Street after the company went public with an IPO earlier in the day on July 29, 2021 in New York City.
Spencer Platt | Getty Images News | Getty Images

Berkshire Hathaway Vice Chairman Charlie Munger blasted stock trading app Robinhood on Saturday, saying the company is now “unraveling.”

“It’s so easy to overdo a good idea. … Look what happened to Robinhood from its peak to its trough. Wasn’t that pretty obvious that something like that was going to happen?” Munger said at Berkshire Hathaway’s annual shareholder meeting Saturday.

Munger lambasted what he characterized as Robinhood’s “short-term gambling and big commissions and hidden kickbacks and so on.”

“It was disgusting,” Munger said. “Now it’s unraveling. God is getting just.”

Munger in February of last year amid a wild meme-inspired trading rush first criticized Robinhood for its practices.

Robinhood shares are down 88% from their recent high and just reported a decrease in users and a wider-than-expected loss for the first quarter.

Check out all of the CNBC Berkshire Hathaway annual meeting coverage here.

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