Billionaire
“I think it must end badly but I don’t know when,” Munger said of the stock market's run to record levels. He fielded questions for two hours Wednesday at the annual meeting of another company he is chairman of, the
Munger said the recent frenzy over
“That’s the kind of thing that can happen when you get a whole lot of people who are using liquid stock markets to gamble the way they would in betting on race horses,” Munger said.
Munger said inexperienced investors are being lured into the market by newer brokerages like Robinhood that offer commission-free trading. Robinhood has defended its practices but critics say some features on its trading platform make investing seem like a game, such as showering a user’s screen with virtual confetti every time they make a trade.
“The frenzy is fed by people who are getting commissions and other revenues out of this new bunch of gamblers,” Munger said.
Munger also took aim at the special purpose acquisition companies, or SPACs, that have exploded in popularity on
“I think this kind of crazy speculation in enterprises not even found or picked out yet is a sign of an irritating bubble,” Munger said.
In between more serious topics, Munger mixed in lighter advice on life for investors.
“The first rule of a happy life is low expectations. That’s one that you can easily arrange. If you have unrealistic expectations, you’re going to be miserable all your life,” Munger said.
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