Capital Calls: Sage vs. spice

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The Robinhood App is displayed on a screen in this photo illustration January 29, 2021. REUTERS/Brendan McDermid/Illustration

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OLD BRO VS. NEW BRO. The Robinhood Markets founders must feel as if they have arrived. The retail-trading app’s name got tossed around at Warren Buffett’s annual Berkshire Hathaway (BRKa.N) gathering over the weekend, with Buffett sidekick Charlie Munger saying the gambling element of the app was “deeply wrong.” read more In an on-brand response, Robinhood said the last year has shown “that people are tired of the Warren Buffetts and Charlie Mungers of the world acting like they are the only oracles of investing.”

Robinhood’s users had a public battle with hedge fund types like Steven Cohen earlier this year. But Buffett has always been almost untouchable – not only separate from Wall Street but also the envy of renowned investors, who have tried to mimic Berkshire’s structure and Buffett’s success .

Both the old guard and the new guard can be partly right. Robinhood’s casino-like trading doesn’t require the rigor that Berkshire prides itself on. At the same time, the app is making investing more accessible. As any good investor knows, it takes two sides to make a market. (By Lauren Silva Laughlin)

On Twitter http://twitter.com/breakingviews

Earlier in Capital Calls:

Apollo treads where Verizon flubbed read more

Vote is writing on Warren Buffett’s wall read more

Westpac sets lofty M&A-style cost-cutting goal read more

Reliance spotlights a troubled consumer read more

UK is late arrival on SPAC launchpad read more

Reuters Breakingviews is the world’s leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

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