Feb. 27, 2021, 3:53 p.m. EST

Charlie Munger says it’s ‘really stupid to have a culture which encourages [so] much gambling in stocks’

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By Mark DeCambre

So says Charlie Munger, Warren Buffett’s longtime business partner and vice chairman of Berkshire Hathaway, in a Wednesday interview with Yahoo Finance .

The famously plain-spoken Munger made his comments in reference to the GameStop short selling chaos that gripped Wall Street a month ago, as an army of individual investors congregating on social-media platforms like Reddit and Discord, rattled the broader market by upending the short bets of professional investors.

The episode resulted in a hearing last week before the House Financial Services Committee, where the head of the popular trading platform Robinhood defended a decision in late January to temporarily restrict trading in so-called “meme stocks,” including GameStop /zigman2/quotes/203755179/composite GME +0.04% and AMC Entertainment Holdings /zigman2/quotes/200235402/composite AMC +2.69% . GameStop exploded back into the news Wednesday as trading in the stock, which doubled in value on the day, was repeatedly halted .

Markets eventually bounced back from the late January saga, but the epic short squeeze momentarily rattled their bullish demeanor, sending the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.62% , the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.57% and the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +0.67% indexes to their sharpest weekly declines since October.

/zigman2/quotes/203755179/composite
US : U.S.: NYSE
$ 158.60
+0.07 +0.04%
Volume: 2.24M
April 21, 2021 12:31p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$11.10 billion
Rev. per Employee
$424,150
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/zigman2/quotes/200235402/composite
US : U.S.: NYSE
$ 9.53
+0.25 +2.69%
Volume: 12.64M
April 21, 2021 12:31p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$4.18 billion
Rev. per Employee
$43,642
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
34,030.45
+209.15 +0.62%
Volume: 139.04M
April 21, 2021 12:32p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,158.59
+23.65 +0.57%
Volume: 921.44M
April 21, 2021 12:32p
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/zigman2/quotes/210598365/realtime
US : Nasdaq
13,879.23
+92.96 +0.67%
Volume: 1.81M
April 21, 2021 12:32p
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