In the latest Berkshire Hathaway Annual Meeting, Charles Munger discusses how stocks are being traded on a casino basis. Here’s an excerpt from the meeting:
Munger: Well it happened, it’s almost a mania of speculation that we now have. We have computers with algorithms trading against other computers. We’ve got people who know nothing about stocks being advised by stock brokers who know even less. I understand the commission though!
It’s just an incredible crazy situation and it’s weird that we ever got a system where all this equivalent of casino activity is all mixed up with a lot of legitimate long-term investment.
I don’t think any wise country would have wanted this outcome. Why would you want your country’s stocks to trade on a casino basis to people who are just like the people who play craps and roulette in the casino? I think it’s crazy but it happened.
You can watch the entire discussion here:
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