Buffett, Munger, and Robinhood: Democratizing Investment or Turning It into a Casino?

Swensen's pioneering approach to long-term asset management left an indelible mark on endowments and pensions. The worlds of private equity and venture capital no doubt owe a debt of gratitude to his emphasis on alternative investments. ----- Another subject is greed, fear, and Robinhood. Buffett worries Robinhood creates a platform catering to gambling, turning shares into casino chips. Robinhood responds as expected: these are elitist statements. Its aim is a platform enabling ordinary people to invest easily, while elites’ comments merely obstruct access. "If the last year has taught us anything, it is that people are tired of the Warren Buffetts and Charlie Mungers of the world acting like they are the only oracles of investing," The SEC chair also shares Buffett’s concern: Gary Gensler is concerned that platforms like Robinhood turn stocks into a game, prompting users to make more trades. Robinhood should heed the Oracle of Omaha’s advice: "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." There are many signs that we are living in greedy times. Robinhood would be wise to put its users' financial health first, protecting both a generation of investors and its own self-interest. As Buffett has said, "The most important thing to do if you find yourself in a hole is to stop digging." Another point: Robinhood is preparing for an IPO. Robin believes investing should return to reason and value creation, rather than place us in a gigantic casino.