At the annual shareholder meeting in Omaha, Warren Buffet and his right-hand man, Charlie Munger, usually give interesting remarks. The first in-person edition didn't fail to impress.
Munger didn't hold back after Robinhood had its worst quarter yet.
Munger called the company's business model "disgusting" and said it wasn't surprising the company was unraveling.
The digital investing platform exploded in popularity during the pandemic, but has struggled to maintain its popularity since.
Last week, the company announced it was dismissing 9% of its full-time staff while reporting a wider-than-expected loss and revenue downturn. From their August 2021 high, shares of Robinhood are down 80%.
The CEO of the platform said on a conference call that they are seeing more pronounced declines from customers with lower balances.
At last year's annual meeting, Warren Buffet likened the company to a casino, and said that people who are gambling on short-term price movements in stocks, instead of long term investors, would be attracted to the company.
The company has attracted scrutiny over its alleged gamification of investing. Lawmakers accused Robinhood of creating an app that made investing into a video-game like atmosphere that turned decisions involving real money into a game for rookies.
Munger criticized the company's short-term gambling and big commissions and hidden kickbacks on Saturday.
It's easy to get carried away with a good idea. From its peak to its trough, look at what happened. Munger said that it was obvious that something like that was going to happen.
The platform and its users were mischaracterized by the 98-year old billionaire.
It is tiresome seeing Mr. Munger mischaracterize a platform and customer base he knows nothing about.
Fortune's request for comment was not immediately responded to by representatives of the two companies.
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